March 20-26, 2014

Myanmar Business Today

mmbiztoday.com
mmbiztoday.com March 20-26, 2014 | Vol 2, Issue 12 MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
Myanmar Summary
Myanmar Summary
Contd. P 19...(Yoma)
Contd. P 19...(Yoma)
Contd. P 6...(SMILB) Contd. P 6...(SMILB)
Yomu to Rump op Myunmur
Investments by $130 Million
Aims to diversify into agriculture, logistics and education sectors
Nwe Zin
S
ingapore-listed Yoma
Strategic Holdings
(YSH) last week an-
nounced its plans for a
massive expansion of its
business interests in My-
anmar in a bid to diversify
its portfolio and income
stream in the frontier mar-
ket of the Southeast Asian
country.
The company, which
mainly deals in real estate
and property, will bolster
its push into Myanmar by
branching out into educa-
LIon, coee, duIry prod-
ucts, cold storage and
logistics businesses, with
an estimated total invest-
ment of $130 million.
The moves are part of
the companys push to
buIId u dIversIhed porLIo-
lio in Myanmar, Andrew
Rickards, chief executive
of YSH, said at a press
conference in Singapore.
YSH said these devel-
opments are in line with
its long-term vision and
planning as it leverages
on its solid foundation to
develop sectors of My-
anmars economy with
strong potential for future
growth.
Yoma tied up with the
International Finance
Corporation (IFC), the
private sector lending arm
of the World Bank Group,
to secure a debt and eq-
uILy hnuncIng puckuge Ior
its venture into the agri-
culture and logistics sec-
tors in Myanmar, which
is subject to completion of
IFCs appraisal, environ-
mental and social impact
assessment.
The company has
formed a new investment
holding company, Yoma
Agricultural & Logistics
Holding Pte Ltd (YALH),
which is intended to hold
the groups interests in
ILs coee, duIry producLs,
cold storage and logistics
businesses.
IFC will invest up to 20
percent equity in YALH
with the remaining 80
percent held by Yoma
Strategic Investment Ltd,
a wholly-owned subsidi-
ary of YSH.
YSH signed an agree-
ment with UK-based
ED&F Man Holdings Ltd
(EDFM), an agricultural
commodities trader, to
plant and produce low-
Iund RobusLu coee wILI-
in the groups plantation
land at the Maw Tin Es-
tate in Ayeyarwaddy divi-
sion of Myanmar.
SMIDB Plans to Lend $21
Million to SMIs
Phyu Thit Lwin
S
tate-owned Small
and Medium Indus-
trial Bank (SMIDB)
plans to lend K20 billion
($20.6 million) to small
and medium entrepre-
neurs In LIe nexL hscuI
year, starting April 1, of-
hcIuI sources suId.
The Central Department
of Small and Medium En-
terprises Development
(CDSMED) under the
Ministry of Industry will
administer the loans to
entrepreneurs at 8.5 per-
cent interest rate, CDS-
MED Director Daw Aye
Aye Win said.
Germanys development
Small and medium enterprises in Myanmar comprise about 90 percent of the Southeast Asian countrys
economy, according to different estimates.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
2
LOCAL BIZ
MYANMARS FIRST BILINGUAL BUSINESS JOURNAL
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Business News in Brief
Mgonmor, S'pore prms to deoelop projects
uorth $zoSm in Yongon
Local Thukhayadana Co Ltd and Singapores Mega
One Investment Pte Ltd will invest $267.88 million to
develop hotels, serviced apartments and retail busi-
ness under build-operate-transfer (BOT) system on a
7.5 acre plot owned by the defence ministry, in Dagon
township at the centre of commercial city Yangon, lo-
cuI medIu reporLed cILIng un om cIuI Irom LIe Myunmur
Investment Commission.
Porlioment sets tox rotes for propertg pur-
chose uith hlock moneg
TIe Myunmur PurIIumenL Ius hxed new Lux ruLes Ior
property purchases with illegal money, local media re-
ported, quoting Lower House law maker Win Oo. A 3
percent tax will be levied on property worth up to K50
million, 10 percent on property worth K50 million to
K150 million, 25 percent on K150 million to K300 mil-
lion, and 30 percent on property worth more than K300
million, he said. Earlier, properties purchased with il-
legal money were taxed 30 percent regardless of value.
Porlioment turns doun proposol for zoopc
dutg hike on liguor
The Myanmar Parliament last week turned down a
proposal of law maker Khin San Hlaing to increase duty
and taxes on alcoholic drinks, cigarettes and other to-
bacco products by 200 percent, local media reported.
The duty and taxes will remain at 100 percent on ciga-
rettes and 50 percent on alcoholic drinks and other to-
bacco products.
Coot sets credit guorontee insuronce premium
for SMEs
Small and Medium Enterprises (SMEs) will have to
pay 3 percent premium as Credit Guarantee Insurance
Ior LIe hrsL yeur, z percenL Ior LIe second yeur und 1
percent for the following years, Deputy Finance Min-
ister Maung Maung Thein said. State-owned Myanmar
Insurance Enterprise will introduce Credit Guaran-
tee Insurance for SMEs on an experimental scale for
one yeur eecLIve AprII 1, beIore 1z prIvuLe Insurunce
companies are allowed to do it, he said. There are over
1zo,ooo om cIuIIy regIsLered SMEs In Myunmur.
1oreigners ege Yongon Stock Exchonge listing
Some foreign investors are buying shares in local pub-
IIc hrms, wIIcI Iuve LIe poLenLIuI Lo geL IIsLed wIen LIe
Yungon SLock ExcIunge IuuncIes In zo1, un om cIuI oI
Daiwa Securities Exchange, which is helping the gov-
ernment launch the bourse, said. However, the compa-
nies selling shares are not abiding by the company law
und LIeIr reporLs ubouL sIureIoIders ure noL sum cIenL,
Ie udded. OnIy hve Lo Len pubIIc compunIes wIII be uI-
Iowed Lo geL IIsLed In LIe hrsL sIx monLIs oI LIe bourse,
according to earlier reports.
Mgonmor eges comprehensioe enoironmentol
monogement sgstem
Myanmar Vice President U Nyan Tun has called for a
comprehensive environmental management system as
purL oI un eorL Lo IImIL LIe ImpucL oI mIneruI expIoru-
tion on the environment in Myanmar. He urged the law
enforcement bodies to take action against those who
are exploring natural resources illegally and businesses
which do not follow rules and regulations protecting
the environment.
Mgonmor porlioment opprooes tuo tox hills
Myanmar Union Parliament has approved two tax-
related bills, amending the Income Tax Law and the
Commercial Tax Law during the ongoing ninth regular
sessions in Nay Pyi Taw. The newly-approved income
Lux Iuw wIII come InLo eecL Irom zo1q-1 hscuI yeur.
Morine products export to drop 1g.opc this ps-
col geor
Myanmars exports of marine products will drop 15.64
percenL Lo ubouL $o mIIIIon LIIs hscuI yeur endIng on
March 31, compared with $652 million in 2012-13, local
media reported, quoting Myanmar Fishery Federation
Vice-Chairman Han Tun. Han Tun attributed the fall to
u rIse In producLIon cosL und depIeLIon oI hsI sLocks In
Myanmar waters. However, Deputy Minister of Fishery
Khin Maung Aye had earlier said that the drop in ex-
ports of aqua-products was because of a rise in domes-
tic consumption.
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Myanmar Summary
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
3
LOCAL BIZ
Myanmar Summary
New Bids Iorce Iorther eluy Ior Myunmur Airport Work
W
ork on the
$ 1 . 1 - b i l l i o n
Hanthawaddy
International Airport in
Myanmar faces additional
delays because the four
short-listed competitors
for the job will have to
submit new bids because
of a major change in
project policy, a senior
TrunsporL MInIsLry om -
cial told Reuters.
Our government has
agreed to seek ODA (of-
hcIuI deveIopmenL ussIs-
tance) for implementing
the project, the senior of-
hcIuI LoId ReuLers, uskIng
noL Lo be IdenLIhed sInce
he was talking to the me-
dia without authorisation.
So, to make the com-
petition fair ... we decided
to invite the four short-
listed bidders to send in
their tenders again. The
deadline is on April 22,
he added.
Originally, the project
wus LurgeLed Lo hnIsI by
2018, but it would now
take some more time.
Aung Hla Tun
In August, a consorti-
um led by South Koreas
Incheon International
Airport Corp was named
as the preferred bidder to
build Hanthawaddy In-
ternational Airport, but
those discussions were
said to have broken down.
Other bidders include
a consortium made of up
Singapores Changi Air-
port Planners, Yongnam
Holdings and Japans
JGC Corp and a consorti-
um made up of Vinci Air-
port of France and Taisei
Corp of Japan.
TIe om cIuI suId boLI
Incheon and Yongnam
had come up with sugges-
LIons on purLIuIIy hnunc-
ing the project with de-
velopment assistance and
the government took that
into consideration.
Located near Bago, the
Hanthawaddy Interna-
tional Airport is about 60
miles (96 km) away from
the international airport
in the commercial capital
of Yangon.
Only three of about
three dozen airports op-
erating in Myanmar are
considered international
airports. Yangon Inter-
national Airport is being
upgraded and expanded
and Mandalay Interna-
tional Airport is awaiting
upgrades.
Spurred by political
and economic reforms in
the past few years, tour-
ist arrivals to the country
have almost exceeded the
capacity of existing facili-
ties in Yangon, Mandalay
and the capital of Nay Pyi
Taw. Reuters
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F
ile
s
MPI Invites Ioel
Sopply Tender
T
he Myanma Petrochemical Enterprise (MPE) un-
der the Ministry of Energy has invited tenders for
the supply of high speed diesel (HSD) and Jet A1,
according to an announcement.
The bid winner will have to supply 1.645 million bar-
rels of HSD and 752,000 barrels of Jet A1 type aviation
fuel.
The tender will close on April 2 at 12pm and opened
on the same day at 1pm, MPE said.
The delivery time for the aviation fuel is between April
1, 2014 and March 31, 2015.
Tender documents and detailed information were
made available since Thursday last week at the Depart-
menL oI Inunce, MPE, In Nuy PyI Tuw, durIng om ce
hours on payment of K100,000 ($100) per set.
The MPE said only bidders who has purchased ten-
der documenL om cIuIIy Irom MPE wIII be uccepLed Ior
evaluation.
Kyaw Min
Myanmar Summary
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
4
Myanmar Summary
Myanmar Summary
Centurion Starts
Myunmur Gold Ixplorution
V
ancouver-based Centuri-
on Minerals Ltd has ini-
tiated a reconnaissance
(phase 1) exploration program
on its slate belt concession in
central Myanmar, the company
said.
The exploration program will
include geological mapping,
stream sediment geochemis-
try, and evaluation of historical
gold occurrences, the Canadian
miner said.
Subject to receipt of all regu-
latory approvals, Centurion will
hold an 80 percent interest in
the concession with 20 percent
held by its Myanmar partner,
Crown Minerals Company.
Myanmars exploration and
mining permits are issued by
the central government and al-
low for a mineral concession to
be expIored Ior up Lo hve yeurs
followed by a 25 year produc-
tion period.
Centurion said that through
Phase 1 exploration program
the company is aiming to prior-
itise targets within the conces-
Pann Nu sion and, as part of the Myan-
mur permILLIng process, hnuIIse
the location of the slate belt
concession boundaries.
The slate belt concession is
located south of Mandalay city
and covers an area of approxi-
mately 692 square kilometres.
The Moditaung gold mine and
the Lebyin gold-antimony mine
are within a few kilometres
south and east, respectively, of
the slate belt concession bound-
aries. The slate belt concession
is road accessible and explora-
tion activities can be carried out
year round, Centurion said.
The Moditaung and Lebyin
mines were discovered and
evaluated by another Canadian
mining giant Ivanhoe Mines
Ltd during the late 1990s and
early 2000s; a phase of explo-
ration which also included the
discovery of a number of gold
occurrences within the slate
belt concession.
The current program on the
slate belt will include the explo-
ration of geological and struc-
tural environments similar to
those hosting the Moditaung
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Minerals Ltd ._ _.,.:.
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and Lebyin mines, Centurion
said.
Centurion is involved in ex-
ploration and development of
gold and other precious metal
projects in Southeast Asia.
Villagers pan for gold at the Irrawaddy river near the town of Myitkyina in northern Myanmar.
S
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MOL Looks At Iorther
Myunmur Ixpunsion
J
apanese shipping com-
pany Mitsui OSK Lines
(MOL) is eyeing more
business beyond its existing
container shipping business
in Myanmar, the company an-
nounced.
Apart from future expansion
on the container business in
Myanmar, MOL may expand its
other businesses to cover bulk-
ers, tankers and car carriers,
the company said in a release.
As Myanmar continues to
open up and expand, we see the
country standing in front of a
new world a world of grow-
ing economic opportunities of
trade, infrastructure develop-
ment and regional strategic hub
position for maritime transpor-
tation, said MOL president
Koichi Muto.
MOL is pleased to work to-
gether with the country to seize
the growth opportunities by
further expanding our contain-
ership businesses in time, he
said.
MOLs presence in Myanmar
dates back to 1898 when the
hrsL curgo sIIp HIkosun Muru
called at the Port of Yangon.
Since March 2012, a direct ser-
vice linking Singapore and Yan-
gon has been established. In
October 2012, MOL established
Zayar Phyo MOL Myanmar Ltd, a wholly-
owned subsidiary of MOL.
I am grateful to the Myan-
mar government, customers
and partners for their contin-
ued support in MOLs business
development. Over the years,
MOL has grown in tandem with
Myanmar and we have long be-
come one of the countrys clos-
est partners, Koichi said at a
reception MOL hosted for gov-
ernment leaders, customers,
partners and MOL employees
in Yangon.
The shipping giant said that
as a multi-modal transport
group MOL will continue to ac-
tively seize opportunities that
contribute to global economic
growth by constantly monitor-
ing our performance and meet-
ing customer needs.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
5
Myanmar Summary
IGV Ioruys eeper into Myunmur
with $1g-m Robber Plunt eul
M
alaysian agri-
business giant
Felda Global
Ventures Holdings Bhd
(FGV) has inked a joint
venture agreement to
set up a $15-million rub-
ber processing plant and
scouL Ior greenheId und
brownheId opporLunILIes
in Myanmar, the compa-
ny said.
FGVs subsidiary FGV
Myanmar (L) Pte Ltd en-
tered into the deal with
local Pho La Min Trad-
ing Co Ltd (PLM) to form
FGV Pho La Min Co Ltd.
FGV will subscribe to
a 51 percent stake in the
joint venture entity and
PLM will hold the rest.
FGV and PLM will build
a modern rubber process-
ing plant in Myeik with a
target capacity of 24,000
tonnes a year, FGV said.
The plant in Myeik in
southeastern Myanmar is
scheduled to be complet-
ed by LIe hrsL quurLer oI
next year.
We have high ambi-
tions for this company to
excel as a big player in
Myanmar in the rubber-
related industry, FGV
Group President and
CIIeI ExecuLIve Omcer
Mohd Emir Mavani Ab-
dullah told the media dur-
ing the signing.
The joint venture com-
pany plans to be involved
in many areas but this
year we will concentrate
on the rubber industry,
Kyaw Min Emir said.
FGV has been aggres-
sively pursuing opportu-
nities in Myanmar since
2011. It signed a memo-
randum of understanding
with PLM in 2012 to de-
velop a complete supply
chain in palm oil, rubber
and sugar in Myanmar. It
is already exporting palm
oil products such as SAJI
cooking oil, Adela indus-
trial margarine, Mariana
shortening and SunBear
bread spread range to
Myanmar.
We want to further ex-
pand our product distri-
bution in Myanmar and
we hope once we reach
20,000 metric tonnes
of supply, we can open
a small packaging plant
here, he said.
Last year, FGV export-
ed about 14,000 met-
ric tonnes of cooking oil
products to Myanmar.
The joint venture com-
pany also plans to open
another plant in Mon
state and develop 30,000
IecLures (Iu) oI greenheId
and 10,000ha of brown-
heId Iund, Ie suId.
However, the green-
heId deveIopmenL wouId
be done in stages as the
Myanmar government
only allows a 70-year land
lease for foreigners, he
added.
He also said the com-
pany would also consider
the possibility of ventur-
ing into the downstream
business.
It could be anything
like slippers or maybe
a small factory making
tyres. We will continue to
look into all possibilities
and opportunities in the
rubber industry here, he
said.
Emir said FGV is also
looking to venture into
the sugar industry since
Myanmar still has a sugar
shortfall.
The country only has 12
to 14 sugar mills ... there
is a lot of growth poten-
tial here. We are looking
into the possibility of how
we can co-invest with the
government, either in raw
sugur or rehned sugur.
He said the company is
keen to work with local
smallholders and might
later look into the possi-
bility of acquiring a sugar
mill in the country.
Emir said the group
also plans to venture
into Cambodia, focus-
ing on rubber plantation
and processing. He said
FGV group was looking
uL brownheId ucLIvILIes In
Indonesia and Africa.
PLM has expanded its
business portfolio in re-
cent years and is current-
ly looking at new markets
around the world. PLM
mostly deals in the export
of assorted types of My-
anmar rubber.
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Global Ventures Holdings
Bhd (FGV) ._ _., .:.
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A plantation worker scrapes rubber latex at a rubber plantation.
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
6
Myanmar Summary
From page ...(SMILB)
From page ...(SMILB)
MATRAI Iyes $1 Million Worth oI
Constroction Projects in Myunmur
M
alaysia External Trade
Development Corp
(MATRADE) will be
targeting various construction
projects for Malaysian com-
panies worth RM400 million
($122 million) in Myanmar, the
trade agency said.
These projects include resi-
dential, commercial, industrial
parks and mixed development
projecLs sucI us IoLeIs, omce
buildings and shopping malls.
The owners of these projects,
wIIcI were IdenLIhed by MA-
TRADE, are Myanmar govern-
ment-related agencies and the
private sector, it said.
MATRADE said Malaysian
hrms ure In LIe besL posILIon Lo
contribute to the development
of the country due to its prov-
en track record in undertaking
various construction and infra-
structure projects internation-
ally.
TIe MuIuysIun hrms represenL
various construction sector in-
cluding building construction,
property and township devel-
opment, infrastructure, roads
and highways, water-related
services as well as consultancy
services such as engineering,
architecture, project manage-
ment and specialised research
services.
Last year, MATRADE said,
Zayar Phyo
projects worth RM330 million
($1oo mIIIIon) were IdenLIhed,
uddIng Myunmur oers Iuge
business potential and oppor-
tunities, especially in the infra-
structure and property develop-
ment sector.
Reforms undertaken by the
Myanmar government have im-
pacted positively to the coun-
trys economy and enhanced
Lrude und InvesLmenL ows
within the country, it added.
There is a surge in demand
for modern residential and
commercial properties due to
the peoples changing lifestyles
und IoreIgn InvesLors` Inux
into the country, said MAT-
RADE.
Infrastructure development
has been given a priority by
the government to facilitate the
rapid economic activities taking
place in Myanmar.
Nine Malaysian construction
companies will be joining MA-
TRADE for a Specialised Mar-
keting Mission to Myanmar
from 1721 March to meet the
project owners and assess the
projecLs IdenLIhed.
Programs arranged by MAT-
RADE Ior LIe MuIuysIun hrms
Since Myanmar opened up IN 2011, construction sector has experienced a massive boom. Now, MATRADE eyes to bag about
$122 million worth of construction projects in the country.
O
liv
e
r

S
lo
w
bank KfW and Japan In-
ternational Cooperation
Agency (JICA) are expect-
ed Lo oer LecInIcuI und
hnuncIuI ussIsLunce Ior
the project, she said.
The move comes as
Myanmar tries to des-
perately strengthen its
estimated 120,000 SMEs
ahead of the ASEAN Eco-
nomic Community (AEC)
In zo1. TIe Iree ow oI
goods and labour in AEC
Is expecLed Lo pose sLI
challenges before the ill-
funded Myanmar SMEs
who will be competing
against their superior ri-
vals in the region.
We have already re-
ceived about 100 appli-
cations. We will examine
the applicants and visit
their businesses and fac-
tories to see whether they
are following rules and
regulations, and if their
businesses have the po-
tential to boom, Daw Aye
Aye Win said.
We dont want to waste
the states money. We will
recommend businesses
that will have better pros-
pects to the SMIDB for
loans.
Myanmars SMEs cur-
rently depend for loans
on SMDB, wIIcI oers
an interest rate of 8.5
percent, lower than the
1 percenL oered by LIe
commercial banks. How-
ever, SMIDB only gives
loans to businesses from
the manufacturing sector.
The small enterprises
need hnunces Lo boosL
their productions. If we
cun geL sumcIenL Iouns we
will become more com-
petitive and will be able
Lo muke beLLer prohLs,
small entrepreneur Daw
Toe Toe Mar said.
There is a need for
more capital in the mar-
ket to secure more raw
materials and increase
outputs. The new loans
wIII IuIhI some oI LIuL de-
mand, businessperson U
Tun Myint said.
SMIDB has already
granted K10 billion
($10.2 million) to 62 My-
anmar entrepreneurs,
sources said. The lender,
which now has 12 branch-
es across the country, will
open four more branches
soon.
The SME bill has cur-
rently been brought to the
parliament and is expect-
ed to be enacted soon.
Interru Spods Oil Well in Myunmur's
Yenungyuong Oil Iield
S
ingapore-based oil
and gas exploration
company Interra Re-
sources Ltd said its jointly
controlled entity, Gold-
petrol Joint Operating
Company Inc, has started
drilling development well
YNG3267 in the Yenang-
yuung oII heId In Myun-
mar.
YNG 3267 is drilled as
un up-dIp oseL Lo LIree
oil producers which have
been completed over the
previous six months at
rates as high as 176 bar-
rels of oil per day, Interra
sad.
The company said the
targeted depth is 4,000
feet with the primary ob-
jective of accelerating
production from the oil
Kyaw Min reservoirs that produce
from wells in this fault
block.
Interra has a 60 percent
interest in the Improved
Petroleum Recovery Con-
tract of the Yenangyaung
heId und uIso owns 6o
percent of Goldpetrol
which is the operator of
LIe heId.
YNG3267 is being
drilled using Goldpetrols
ZJ 450 rig, thus drill-
ing costs are expected to
be relatively low, Interra
said, and its share of the
cost of drilling is funded
from existing funds on
hand.
Interra estimates that
the results of the drilling
and completion should be
available in approximate-
ly six weeks.
Myanmar Summary
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include meetings with project
owners and participation in the
Myanmar Infrastructure Sum-
mit and Exhibition, organised
in Yangon, Myanmars com-
mercial capital.
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
7
LOCAL BIZ
Myanmar Summary
Singupore-listed Yomu Ixpunds into
CoHee in Myunmur
S
ingapore-listed Yoma
Strategic Holdings
Ltd plans to set up
what it says could become
LIe bIggesL coee pIunLu-
tion in Myanmar, hoping
the frontier economy has
the potential to develop a
sLrong coee IndusLry.
The Myanmar-focused
property conglomerate,
led by Chairman Serge
Pun, said it has signed a
deal to set up a joint ven-
Lure Lo esLubIIsI u coee
business with ED&F Man,
a global agricultural trad-
er.
Yoma will hold an 85
percent stake in the ven-
ture, which is expected to
require up to $20 million
of investment over four
years. Its target will be to
plant 3,700 acres of cof-
fee.
We think this will prob-
ably become the biggest
coee pIunLuLIon In LIe
country, and could start
Rujun Shen
u new Lrend oI coee
from Myanmar, Andrew
Rickards, Yomas chief
execuLIve om cer suId uL u
brIehng In SIngupore wILI
analysts and reporters.
The main thrust of this
is likely to be exports.
Myanmar is geographi-
cally well situated to be-
come u coee producer,
LIougI ILs coee IndusLry
is in its early days and
fragmented, with a num-
ber of small plantations.
In 2012, it produced
about 8,000 tonnes of
coee beuns on 1z,ooo
hectares (29,652 acres)
of land, according to es-
timates of the Food and
Agriculture Organisation
of the United Nations. In
2011, the country exported
under 1oo Lonnes oI coee.
By comparison, Vi-
etnam, the worlds top
producer of the strong-
uvoured robusLu beuns,
churned out nearly 1.3
mIIIIon Lonnes oI coee
in 2012, exporting most
of that.
Rickards declined to
give details on the planta-
tions production target,
but said a yield of one
tonne per acre per year
would be a reference for
early years of the planta-
tion.
The plan is part of Yo-
mu`s eorLs Lo become u
more dIversIhed compuny.
It also announced it had
signed an agreement with
the Myanmar government
to set up a dairy plant to
supply milk to schoolchil-
dren, as well as a cold stor-
age and logistics business
with Japans Kokubu & Co
Ltd.
Yoma garnered over
90 percent of its income
from property business
in Myanmar in 2013, and
would like to see the con-
tribution from non-prop-
erty businesses to rise to
at least 50 percent, com-
pany chairman Pun said.
In addition to property,
it also owns a car service
busIness, Myunmur`s hrsL
department store and a
hot air balloon tour op-
erator.
Yoma shares rose more
LIun 1 percenL Lo u hve-
week high of S$0.72 last
week. Reuters
. ~:. ~._ .. ~ Yoma
Strategic Holdings Ltd ._
_.,.:.~ .~,..~:e
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q, . . .,_. . _., .:. _ .~: e
. . , . .~: _. q, ~~ ~
~.:.~.:.~: ..:.q .,._
e ..: . :.._~: .._ . . q
._ . ~ _ SergePun ...:
._ ~ . _. ._.. . , .~ ~:..
_~.. ~..|.~:e..,.~:.
~~ .~ . ...|.. . ..: q,
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MIP Culls Power Tenders
T
he Hydro Power Generation Enterprise under
the Ministry of Electric Power (MEP) has invited
a tender for underground works at Yeywar Hy-
dropower project on Myit Nge river in northern Shan
state.
Interested companies may obtain tender forms at Of-
hce No.(8), Nuy PyI Tuw unLII AprII 1.
Completed forms has to be submitted to the same of-
hce beIore 1oum on JuIy q, und LIey wIII be opened uL
2pm on the same day.
Further information can be obtained by phone at +95
067411415 or by fax at +95 067411081.
Also, the Procurement Branch under MEP has invited
un open Lender Lo renL ouL LIe couI hred TIermuI Power
Plant from Tichit Area for a lengthy period.
Tender forms can be obtained starting from May 11 at
Om ce No.(8), ProcuremenL DepurLmenL, MEP.
Completed forms have to be submitted before May 8.
Further information can be obtained by phone at +95
067411168 and +95 067411154.
Phyu Thit Lwin
Myanmar Summary
A worker dries coffee beans.
Y
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...~~,_~._:,.~.~:~q .q~:.....~...q...
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, .~. ~ ,, ~ -_.. ~ q~.,.~.qe.:..._~:.
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~.~..q.__e.._..,:~..~.~.~~.~ .:.
~~....~.q..|~e,.,.|~ + ~',~~,~. .e ~+
~',~~~~ .e~......._~:. .q._.
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
8
Myanmar Summary
Imerging Myunmur Aims to Cutch Lp
to Its Neighboors
I
n her bare-bones classroom,
Daw Myat Marlar makes a
wish for her young students
from Myanmars densely popu-
lated but energy-starved Aye-
yarwady Delta. I want them to
be educated so they have more
opportunities, and life wont be
as hard for them as it is now.
MurIur`s wIsI reecLs un
evolving belief that a better fu-
ture is possible in Myanmar.
Since 2011, a wave of political
and economic reforms has be-
gun to change Myanmar and
initiate its transition from con-
IcL Lo peuce, Irom u mIIILury
government to a democracy,
and from a closed to an open
economy.
Amid growing international
recognILIon oI LIIs eorL, WorId
Bank President Jim Yong Kim
recently announced a $2 billion
program to help Myanmar de-
liver universal health care to all
citizens by 2030 and dramati-
cally improve access to energy
seen as key to improved living
conditions, job prospects, and
economic growth.
Expanding access to electric-
ity in a country like Myanmar
can help transform a society
children will be able to study
at night, shops will stay open,
and health clinics will have
lights and energy to power life-
saving technology. Electricity
helps bring an end to poverty,
suId KIm, on IIs hrsL vIsIL Lo LIe
country on January 26.
Myanmar, also known as
Burma, is one of the poorest
countries in East Asia. About
70 percent of Myanmars popu-
lation about 40 million peo-
pIe - IIves o-grId. BIuckouLs,
brownouts, and rationing are
common among those who
have access. A very small per-
centage of the national GDP
has been spent on education
and health care, and some 32
percenL oI cIIIdren under hve
suer Irom muInuLrILIon. TIe
country is ranked 182nd out of
189 economies on the ease of
doing business.
But Myanmar is trying to
turn things around. Economic
growth was 6.5 percent last
year as gas production, services,
construction, and commodity
exports rose. The country is ex-
pected to grow at a 6.8 percent
rate this year. The government
is working with the interna-
tional community, including
the World Bank Group, to im-
prove infrastructure, education,
health care, and the business
climate.
The country is in a hurry to
catch up to its neighbours, in-
cluding India, China, and other
high-growth emerging nations,
says Kanthan Shankar, the
World Banks country manager
in Myanmar. There is a lot to
do.
In the 18 months since the
World Bank Group opened an
omce In Myunmur, IL Ius sLurLed
two projects and has several in
the pipeline, he says. The Bank
Group Is combInIng hnunce
from its fund for the poorest
countries, the International
Development Association, with
eorLs Lo sLImuIuLe LIe prIvuLe
sector and encourage invest-
menL by oerIng poIILIcuI rIsk
insurance.
The fund for the poorest will
provide $200 million to help
Myanmar achieve universal
health coverage by 2030. The
funding will increase access
to essential health services for
women and children and help
to remove out-of-pocket pay-
ments as a barrier to health
care for the poorest people. An-
other $80 million in grants are
already helping people in rural
communities invest in schools,
roads, water and other projects.
Other pending projects include:
$31.5 million to expand access
to telecommunications in rural
areas; $30 million to support
modernisation of the countrys
pubIIc hnuncIuI munugemenL
systems; and $60 million to
expand a government program
providing grants to schools and
poor students.
To increase energy access, the
Bunk Is hnuncIng u $1qo mII-
lion project to modernise and
expand an electric power plant
in Mon State. The revamped
plant will produce 250 per-
cent more electricity with the
same amount of gas, with the
Increused cupucILy benehLIng
areas around cities and the na-
tional grid.
Longer term, a national elec-
LrIhcuLIon sLruLegy, bucked
by the Sustainable Energy for
All Initiative, will guide deliv-
ery oI reIIubIe, uordubIe, und
sustainable electricity services
to the population of around
60 million. In rural areas, the
strategy probably will include
u mIx oI on-grId und o-grId
energy and renewables such as
wind power, says Shankar.
IFC, the arm of the Bank
Group focused on the private
sector, has invested $2 million
Ior mIcrohnunce Iouns supporL-
ing about 200,000 micro and
small businesses, mostly run
by women, and is helping three
other institutions build the ca-
pucILy Lo oer sucI hnuncIng.
The investment is part of an
overuII eorL Lo sLImuIuLe en-
trepreneurship and bring pri-
vate investment to sustainably
develop key sectors like telecom
and energy that could help close
the poverty gap.
Its about providing essen-
tial, basic services to the people
of Myanmar, says Vikram Ku-
mar, IFCs resident representa-
tive in Myanmar, of IFCs role.
If small and medium enter-
prises have more power avail-
able to operate throughout the
day, theyre improving their
competitiveness and contribut-
ing to job creation which is
what we focus on and funda-
mental to the goals of ending
poverty and promoting shared
prosperity.
IFC is advising the Myanmar
Ministry of Electric Power on
partnering with the private sec-
tor to generate and distribute
power, with the goal of creating
a basic framework for agree-
ments. In telecom, recent regu-
latory reform is easing the way
for investors to participate in
LIe secLor. Over LIe nexL hve
years, Myanmar has a massive
opportunity to learn from the
experience of other countries to
develop a mobile-banking sec-
tor that would greatly increase
uccess Lo hnunce, suys Kumur.
As of December 2013, previ-
ousIy wury InvesLors wIose h-
nancing is badly needed to de-
velop the private sector and fuel
reform can gain political risk in-
surance from the Bank Groups
Multilateral Investment Guar-
antee Agency.
The people of Myanmar are
eagerly looking forward to the
reform dividend, and satisfy-
ing those aspirations will be the
governments challenge and op-
portunity, says Shankar. WB

To increase energy access, the Bank is financ-
ing a $140 million project to modernise and ex-
pand an electric power plant in Mon State. The
revamped plant will produce 250 percent more
electricity with the same amount of gas.
Myanmar, also known as Burma, is one of the poorest countries in East Asia. About 70 percent of Myanmars population
about 40 million people lives off-grid.
R
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
9
Myanmar Summary
Myanmar Summary
Myunmur Ixpects Purboiled Rice Ixports
to Jomp 1o-Iold Next Iiscul Yeur
T
he Myanmar Rice Indus-
try Association (MRIA)
expects the country to
Aung Hla Tun export 300,000 tonnes of par-
boIIed rIce In LIe nexL hscuI yeur
starting April 1, up from 30,000
Lonnes LIIs hscuI yeur.
Demand for Myanmar par-
boiled rice is growing in Eu-
ropean markets, said MRIA
Chairman Chit Khine. My-
anmar exported most of the
purboIIed rIce durIng LIIs hs-
cal year to European markets,
mainly to Russia.
Myanmars total rice exports,
however, fell 28.6 percent to 1
mIIIIon Lonnes LIIs hscuI yeur,
hurt by a fall in demand from
China and political turmoil in
Thailand.
We have already built mod-
ern mills and factories with
total capacity of over 1,000
tonnes of parboiled rice per day
while some more are still under
construction, Khine said.
Our (parboiled rice) fetches
very competitive prices as it is
processed with modern tech-
nology. We got up to $505 per
tonne this year, Khine said.
He expects Myanmar to ex-
port up to 1.5 million tonnes of
total rice this year.
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Demand for Myanmar parboiled rice is growing in European markets. The country exported most of the parboiled rice during
this scaI year to European markets, mainIy to Russia.
R
o
m
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o

R
a
n
o
c
o
/
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e
u
t
e
r
s
ZICOluw Hosts ASIAN Iorom in Yungon
Shein Thu Aung
S
ingapore-based ZICOlaw,
a network of independent
legal and related profes-
sional service providers in the
ASEAN region, hosted a forum
in Yangon to discuss the im-
pending implementation of the
ASEAN Economic Community
(AEC) in less than two years.
Commentators from across
the ASEAN region joined local
Myanmar stakeholders to ex-
change views on the challenges
und opporLunILIes oered by
the AEC.
Chew Seng Kok, ZICOlaw
Regional Managing Partner,
said: There are challenges in
realising the ASEAN Economic
Community (AEC) and hence
regional economic integration
is pivotal.
With ASEANs economic
blueprint outlining a wide-
ranging series of goals for
economic integration and the
urgency to act early, ZICOlaw
aims to be part of this inte-
gration success for ASEAN by
working with businesses in the
public and private sectors.
John Pang, senior advisor,
Hakluyt & Co and former CEO
of CIMB Asean Research Insti-
tute, said: Time is running out
as ASEAN is facing competition
from other regions.
ASEAN needs to institutional-
ise its decision-making process,
dispute resolution mechanisms
and try to harmonise its nation-
al laws and regulations to facili-
tate investments by the private
sector, Tony Kinnear, manag-
ing director, ASEAN & North
Asia, Thomson Reuters said.
K Kesavapany, former di-
rector, Institute of Southeast
Asian Studies, Ong Keng Yong,
Singapore High Commissioner
in Malaysia and former Secre-
tary General, ASEAN, U Moe
Kyaw, managing director, My-
anmar Marketing Research De-
velopment (MMRD), Raman
Narayanan, executive director,
AirAsia Asean, and Dr Naoko
Kumada, research scholar, Ur-
banization Project, New York
University, also spoke at the
forum.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
10
Myanmar Summary
Myanmar Summary
BLP Joins Myunmur Ruce Throogh Locul Purtnership
U
K-bused Iuw hrm Ber-
win Leighton Paisner
(BLP) has ventured
into Myanmar through a non-
exclusive tie-up with local out-
hL eguI NeLwork ConsuILunLs
(LNC), joining a slew of foreign
Iuw hrms uImIng Lo cusI In on
Myanmars recently opened
economy.
LNC will now be a member of
BLPs newly-launched Asia net-
work, a vehicle BLP has created
in a bid to form relationships
with local players in emerg-
ing markets in Southeast Asia,
allowing it to tap the growing
number of deals happening in
the region.
LNC is headed by Khin Mar
Aye, who has 20 years of legal
and commercial experience.
TIe hrm Ius un exIsLIng umIIu-
LIon wILI sIIppIng und P ouLhL,
The Law Chambers.
With the new partnership it
plans to work closely with LNC
In joInL murkeLIng eorLs und
cross-hrm secondmenLs.
AIIsLuIr DumeId, u purLner
and head of BLPs Singapore
omce und SE AsIu, suId: We
have set out to be a leader in
Kyaw Min
Myanmar and are very excited
and positive about this new de-
velopment and our relationship
with LNC.
For us, Myanmar presents a
whole horizon of huge opportu-
nities particularly in the power,
oil and gas, mining, infrastruc-
ture and real estate sectors
which play to our strengths.
Until the deal, BLP has been
servicing Myanmar out of Sin-
gapore, with a practice led by
DumeId, corporuLe purLner Ken
Cheung and energy and pro-
jects partner Nomita Nair.
TIe hrm Ius Iocused IurgeIy
on corporuLe, hnunce, projecLs,
arbitration, compliance and
business establishment work,
targeting regional and interna-
tional multinationals looking to
invest in the country.
BLP is one of the several in-
LernuLIonuI und regIonuI hrms
to have expressed an inter-
est in Myanmar in the last two
years, including Gibson Dunn
& Crutcher, Hogan Lovells, Al-
len & Overy and Herbert Smith
Freehills.
Baker & McKenzie opened
in Yangon in February, Duane
Morris Selvam, signed leases in
both Yangon and Nay Pyi Taw in
SepLember, und ondon P hrm
Rouse launched with a team of
two partners in November.
SInguporeun hrm AIIen & GIe-
dIIII IuuncIed un ussocIuLe hrm
in Yangon in February, while
one oI Jupunese 'bIg Iour` hrms
Mori Hamada & Matsumoto
also moved to Yangon in Janu-
ary.
However, partners say the
market remains challenging
due Lo dImcuILIes sourcIng IocuI
LuIenL und sIow deuIow.
Earlier this month BLP hired
usseL hnunce purLner NIgeI
Ward from Norton Rose Ful-
bright to join its Hong Kong
omce. Wurd`s prucLIce Is cur-
rently focused on China but he
is expected to complement the
projects BLP is working on in
Myanmar and Indonesia.
BP Ius LIree AsIun omces Io-
cated in Singapore, Hong Kong
and Beijing.
Hong Kong Textile MunoIuctorers to
ShiIt Buse to Myunmur Ior Cheup Luboor
H
ong Kongs textile man-
ufacturers have signed
an agreement to set up
an industrial park in Yangon in
a bid to cut down their produc-
tion costs by at least half.
Workers at the 200-hectare
facility in Myanmars commer-
cIuI Iub wIII be puId ubouL u hILI
of those employed in mainland
Phyu Thit Lwin factories, South China Morning
Post reported.
Hong Kongs Liberal Party
lawmaker Felix Chung Kwok-
pan, representing the textiles
and garment constituency,
made the deal on behalf of 12
manufacturers to rent half of
the 400-hectare Thilawa Spe-
cial Economic Zone, which is
being built by Myanmar and
Japan.
We will start the construc-
tion work in mid-2015 and hope
the factories can start operating
by the end of next year, Chung
was quoted as saying.
The land has been rented for
$52 million annually for 50
years.
Chung said the Hong Kong
manufacturers planned to em-
ploy at least 30,000 Myanmar
workers at the market salary of
$100 to $120 a month.
The salary level is only one-
hILI oI LIe muInIund workers.
All products exported from My-
anmar enjoy duty-free access to
all EU countries after [Western
counties lifted] economic sanc-
tions on the country, Chung
said.
Chung said the manufactur-
ers who will invest $2 million
to $3 million in the industrial
park could break even in one
to two years.
L
e
g
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l
W
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k
.e:.~:.- ~_~..
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_., .:. q ~_ ~. . . . .:..:.
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..:~....:.~ ~~ ...e~
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Berwin Leighton Paisner (BLP)
._ _._~...,.~.._e...:
Legal Network Consultants (LNC)
. ..,.....|.._.. ._~:....~
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
11
Myanmar Summary
Contd. P 28...(Lntrepreteur) Contd. P 28...(Lntrepreteur)
Approuching The Irontier: How One
Intrepreneor is Boilding The Iotore in Myunmur
Danny Crichton
I
t can be hard for even the
strongest entrepreneurs to
succeed in cutthroat Silicon
Valley. But throw in simmering
cIvII conIcL, un uImosL non-ex-
istent Internet infrastructure, a
military junta that is still in the
early phases of transitioning to
democratic rule, and develop-
ers more familiar with ColdFu-
sion than Ruby on Rails, and
one might reasonably think
that it would be nearly impos-
sible for any company, let alone
an Internet startup, to succeed
in such an environment.
For Rita Nguyen, though, this
is the everyday life of building
LIe hrsL socIuI neLwork In My-
anmar. Nguyen is no stranger
Lo LIe regIon or ILs conIcL, born
in Vietnam during the war and
evenLuuIIy eeIng Lo Cunudu
with her family after the Re-
public of Vietnam fell. Nguyen
would eventually study at the
University of British Colum-
bia, and worked in a variety of
marketing roles early in her ca-
reer including Electronic Arts,
where she led the community
management team.
While at EA, she was ap-
proached by a leading video
game executive in Vietnam,
who showed her the burgeoning
startup scene underway there in
2009. After spending much of
her life in Canada, Nguyen de-
cided she wanted to spend more
time in the country of her birth.
I decided to spend a year
away from my career, knowing
that it would not be my career
long-term. She wanted to build
her own company, but didnt
know exactly what that would
be and decided to go exploring.
Something must have clicked,
because Nguyen has been work-
ing from Southeast Asia ever
since. Vietnam is a marketers
dream according to Nguyen.
While Western consumer mar-
kets are saturated with mes-
sages, markets like Vietnam are
much earlier in their develop-
ment, and thus, a lot of prod-
ucts have never even been seen
by the public before. This was
even more the case in Myan-
mar, which Nguyen visited after
the suggestion of a friend.
Building on internet stort-
up in o countrg uithout it
Myunmur uL hrsL dIdn`L seem
like the kind of place to build
Rita Nguyens startup dream,
but her interactions with locals
propelled her to build a busi-
ness in the country. There was
so little infrastructure, she ob-
served, but there was so much
passion and interest in technol-
ogy, and so much of it was un-
tapped and unfocused. Back
during the military junta, which
controlled the country from
1962 to 2011, much of the inter-
net was blocked, particularly to
websites outside of Myanmar.
That meant that the only way
to access the internet was using
subversive tools to get around
LIe hrewuIIs, creuLIng u generu-
tion of hackers that are now key
to Myanmars startup hopes.
That hacker culture, though,
remains quite elite. Total inter-
net penetration in the country
hovers around 1 percent of the
population, much of it con-
centrated in the largest city of
Yangon. And while prices for
mobile services have declined
dramatically, they remain out of
reach for most consumers in the
country. Today, one of the few
popular websites is Facebook,
which is used less for commu-
nications (since so few friends
and family are members), but
more to share controversial
news und dIscussIon. Muny hIes
are still shared via Bluetooth
on mobile devices. Yet, the new
government has deep optimism
that it can increase access levels
to greater than three-quarters
of the population over the next
few years.
Given such a gestating mar-
keL, hndIng u producL Lo buIId
was a challenge. A nationwide
consumer culture does not exist
in Myanmar, so there is a lack
of guidelines and best practices
on consumer tastes like in the
West. Plus, there were clones
of everything, from Eventful
to Yelp, Nguyen notes, mak-
Ing IL dIm cuIL Lo hnd un enLry
poInL. n LIe end, LIe dIm cuILy
of determining what consumers
wanted was precisely the sort
of problem that could be solved
through technology.
Nguyen ended up developing
Squar, a social platform that
aims to create a community
around content while actively
collecting data on users and
sharing analytical insights with
advertisers. There are 60 mil-
lion people in the country, and
no one knows anything about
them, Nguyen points out.
Such a model is of course com-
mon in the West, but it broke
new ground in Myanmar. She
brought in two engineer friends
and developed an MVP in May
of last year, and a few short
weeks later, Squar was in the
Google Play store for Android.
1inding inoestors ond
propt
One gauntlet facing startups
In emergIng murkeLs Is hnd-
ing the necessary funding to
continue operating. Venture
capitalists in Silicon Valley of-
ten perceive startups even from
Portland and Boulder to be ex-
otic, let alone from cities like
Yangon or Karachi. This reality
tends to encourage a culture of
bootstrapping and a focus on
prohLubIIILy uL uII LImes, even
in more developed innovation
markets like Singapore and Ko-
rea.
Nguyens experience fund-
raising is typical of other fron-
tier entrepreneurs who perceive
a real culture clash between
investors attuned to emerging
markets, and those who are not.
If you talk to investors who do
a lot in frontier markets, they
very rarely ask how you are
dIerenL Irom ucebook. BuL
when you talk to people from
LIe wesL, IL`s LIe hrsL ques-
tion. They often think in terms
of comparables, but the mar-
ket just isnt ready for it yet.
Nguyen notes that she didnt
have competitors in the market-
place when she started, and that
LIere wus no need Ior dIeren-
tiation. Its actually just an
awareness thing in these early
days. Nguyens startup remains
one of the few venture-backed
startups in the country.
Another misperception of
frontier markets is that there
is little money to be made out-
side the developed world. While
the WhatsApp acquisition last
week may change those views,
it remains likely that VCs in the
West will continue to focus on
the American and European
markets. Yet, there is incredible
prohL possIbIe Ior compunIes
that target emerging consum-
ers properly. Nguyen notes that
Starbucks and Koreas Lotteria
brands are now in the country,
and are packed even at prices
out of reach for most inside the
country.
There is of course billions of
IoreIgn dIrecL InvesLmenL ow-
ing into the country, much of it
going to utilities and other na-
tion building priorities. There
were more than $1.8 billion
foreign investment projects ap-
proved just during the spring
and summer of 2013. But that
money is failing to connect into
the local startup scene. Nguyen
is disappointed with the current
sLuLe oI uuIrs: TIere ure uII oI
these kids who are passionate,
and there is all of this money
coming in, but it is not connect-
ing.
One bright spot, which might
be surprising to those in the
United States, is that the tel-
ecommunications companies
have been in the vanguard in
Myanmar, assisting with in-
novation and partnering with
entrepreneurs to produce more
apps and content. Most con-
There are 60 million people in the
country, and no one knows
anything about them.
Rita Nguyen at Squar Youth Festival in Yangon.
R
it
a

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n
.e . . . ..| ..:.. :_~:.~: . ._.:.
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~.,:~.. .:.......~~.:.
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.,.,~ -e~,.~....~~.:.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
LOCAL BIZ
12
Myanmar Summary
Myanmar Summary
Myanmar Summary
Myanmar Summary
AirAsiu Ties Lp with
Soo Ioondution
A
sias largest budget car-
rier AirAsia has teamed
up with The Suu Foun-
dation, which was launched re-
cently at the Co-operative Busi-
ness Centre in Yangon, in a bid
to improve healthcare and edu-
cation in Myanmar.
AirAsia Berhad CEO Aireen
Omar said, AirAsia applauds
the initiative by the Suu Foun-
dation in bettering healthcare
and education opportunities in
Myanmar and we are proud to
support its cause.
Nobel Peace Prize laureate
and the foundations creator
Aung San Suu Kyi said her foun-
dation aims to raise the stand-
ard of health and education in
Myanmar and thanked AirAsia
for the companys support.
Former US Secretary of State
Hillary Clinton and former US
hrsL Iudy uuru BusI ure uIso
supporting the foundation and
both are honorary co-chairs of
the Suu Foundation.
Nwe Zin
Idocution to Boild Toorism
Iotore Ior Myunmur
A
Norwegian social busi-
ness organisation has
started teaching an Eng-
lish course to Myanmars tour-
ism and hospitality workers
in a bid to help them leverage
the large number of tourists
ockIng Lo LIe SouLIeusL AsIun
country.
The program, sponsored by
the Partnership for Change,
is a six week intensive English
course for the Inle people work-
ing in hospitality and tourism,
Kyaw Min the New York Times reported.
The pilot course proved so
popular that 120 people signed
up to join the next one in July
2014.
The program includes teach-
ing Myanmar workers how to
give directions and how to un-
derstand English grammar.
The program is run by Teach-
ers Across Borders and is ex-
pected to run more courses help
the professional development
of the Myanmar tourism indus-
try if the English course is suc-
cessful.
Mizorum Buns Import oI Pigs und
Pork from Myanmar
D
istrict magistrates of border districts of the Indias
northeastern state of Mizoram have ordered to ban
import of pigs and pork from Myanmar until August
fearing fresh incidents of the Porcine Reproductive and Res-
piratory Syndrome (PRRS).
Authorities of districts adjoining Myanmar, Champhai,
Lunglei, Serchhip, Lawngtlai and Saiha have been instructed
to issue prohibitory orders, Director of the state Animal Hus-
bandry and Veterinary LB Sailo told the Press Trust of India.
Though there has been no fresh infection, he said, but the
state government was taking preventive measures.
The Centre has issued a stern warning to Mizoram on the
import of pigs from Myanmar which shares a 404 km inter-
national border as PRRS is always present in the neighbour-
ing country, Sailo was quoted as saying.
Hundreds of pigs were killed when the PRRS hit Mizoram
early last year, prompting the state government to seal the
border.
Phyu Thit Lwin
Singupore, Myunmur Lniversities
Sign Luw Idocution euls
T
wo universities from Singapore and two from Myan-
mar signed two memoranda of understanding (MOU)
on cooperation in legal education, Singapores Minis-
try of Law said.
The MOUs were signed during the visit of Singapores Sen-
ior Minister of State for Law and Education Indranee Rajah
to Myanmar last month.
The National University of Singapores (NUS) Faculty of
Law and the Singapore Management Universitys (SMU)
School of Law signed an MOU with the Department of Law
of the University of Yangon, and another with the University
of Mandalays Department of Law.
The MOUs aim to promote cooperation in legal educa-
tion between the universities, the ministry said. Key areas
of cooperation will include faculty exchanges, study visits,
curriculum planning and design, cooperation in legal educa-
tion pedagogy, as well as enhancement of legal research and
development resources, it added.
Dean of SMU School of Law, Professor Yeo Tiong Min,
said, Myanmar and Singapore share the same common law
tradition, and face many similar issues in adapting and ap-
plying it in an Asian society.
There is much that the universities can learn from one an-
other on issues of law and legal education. The memoran-
dum of understanding will enable the signatory universities
Lo work more cIoseIy LogeLIer Lo LIe muLuuI benehL oI uII.
Shein Thu Aung
Fishermen at Inle Lake, one of Myanmars top tourist destinations.
S
h
e
r
p
a

H
o
s
s
a
in
y
Aung San Suu Kyi addresses the launching ceremony of Suu Foundation at the Co-
operative Business Centre in Yangon.
U
A
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n
g
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X
in
h
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
13
Myanmar Summary
Contd. P 20...(Thai Bank)
Missing Jet Coold Slow Muluysiun Airline's Retorn to Prot
Mishap could spur management changes
T
he disappearance of the
Malaysian Airline System
(MAS) jet could dent the
national carriers plan to return
Lo prohL by end-zo1q, equILy
analysts said.
Flight MH370 disappeared
early March 8 about an hour
InLo ILs IgIL Irom KuuIu
Lumpur after climbing to a
cruising altitude of 35,000 feet
(10,670 metres).
MAS, which saw its net loss
expand 171 percent to 1.17 bil-
lion ringgit ($359.12 million) in
Yantoultra Ngui 2013 from 2012, could see a loss
in bookings due to the missing
airliner and some analysts be-
lieve it could lead to a change in
management.
We do not discount the pos-
sibly of changes to MAS top
management, given the existing
dIsuppoInLIng hnuncIuI resuILs
and the severity of the current
incident, Daniel Wong, equity
analyst with Kuala Lumpur-
based Hong Leong Investment
Bank, wrote in a note last week.
MAS omcIuIs decIIned Lo com-
ment on any possible changes
to management, saying their
primary focus was to care for
the families of the passengers
on the missing jet.
The latest incident is the sec-
ond mishap for MAS after a
Twin Otter aircraft belonging
to MASWings, a unit of MAS,
crashed while attempting to
land in October 2013, killing
two.
This could last for some
time, even months, said Pong
Teng Siew, head of research at
Kuala Lumpur-based Interpac
Securities. There will be some
apprehension among travellers
whether they should take MAS
IgILs In LIe ImmedIuLe IuLure.
Passengers and regular trav-
ellers of MAS will watch care-
fully how the top management
handles this crisis situation. It
means a lot to the future of the
carrier.
Dicult turnoround
MAS has been aiming to turn
around since it last posted an
unnuuI neL prohL oI z; mIIIIon
ringgit in 2010, but loss-making
routes and competition from
budget airlines like AirAsia
have hurt the company.
It is only recently that it start-
ed to see its turnaround plan
gain traction after a series of
corporate exercises that helped
Improve cusI ow und cuL debL.
The airline also gained the
support of its 20,000-strong
employee union following an
aborted share swap with AirA-
sia in May 2012.
Eleven out of 12 analysts who
cover the stock have either a
strong sell or sell rating, while
one recommended a hold, ac-
cording to data compiled by
ThomsonReuters.
The shares have slumped al-
most 66 percent since 59-year-
old power industry veteran, Ah-
mad Jauhari Yahya, joined the
state-controlled airline in 2011.
Reuters
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Thui Bunk Cots Key Rute, Suys Tension Impeding Recovery
C bank sees 2014 GDP growth at lower than 3pc
Orathai Sriring &
Kitiphong Thaichareon
T
hailands central bank
cut its benchmark inter-
est rate by 25 basis points
last week in a bid to spark
growth in a sluggish economy
hurt by months of political un-
rest.
Highlighting the problems
facing Thailands economy, the
Constitutional Court earlier in
the day blocked government
plans to allocate 2 trillion baht
($62 billion) for infrastructure
projects.
The Bank of Thailands Mon-
etary Policy Committee (MPC)
voted 4-3 to cut the one-day re-
purchase rate to 2.0 percent, a
level last seen in late 2010.
We dont think that todays
rate cut will do much to boost
GDP growth, said Gundy
Cahyadi, an economist with
DBS Bank in Singapore.
TIe IuII In consumer conh-
dence has been triggered by the
political stalemate and we doubt
that rate cut will do anything
sIgnIhcunL Lo Lurn LIuL uround.
In any case, loan growth has re-
mained strong, with household
loan growth still in the double-
digit territory, he said.
At its last meeting on Jan.
22, the committee unexpect-
edly voted 4-3 to keep the rate
unchanged while warning of
substantially increased risks to
growth from the turmoil.
The committee said in a
statement: Downside risks to
growth have risen in the wake
of prolonged political situation.
Core InuLIon Ius edged up, buL
remains subdued. Monetary
policy has some scope to ease,
in order to lend more support
to the economy and ensure con-
LInuous hnuncIuI uccommodu-
tion.
It also said that prolonged
political uncertainties would
continue to impede recovery of
private consumption and in-
vestment.
The committee said the three
members who opposed the cut
felt existing policy was accom-
modative while the main head-
wInds Lo growLI ure noL hnun-
cial in nature.
The central bank said econom-
ic growth was now expected to
be less than 3 percent this year.
At the start of 2014, it expected
growth of about 4 percent.
Scaled-back protests
Last weeks meeting took
place at a time protesters trying
to unseat Prime Minister Yin-
gluck Shinawatra have scaled
back their action, but political
tension and uncertainty still is
taking a toll on Southeast Asias
second-biggest economy, after
Indonesia.
TIuIIund`s consumer conh-
dence tumbled to a 12-year low
in February, a survey showed
Indian sand artist Sudarshan Patnaik appIies the naI touches to a sand art scuIpture he created wishing for the weII being of
the passengers of MaIaysian AirIines Hight MH37U, on a beach in Puri, in the eastern Indian state of Udisha. The MaIaysia Air-
Iines Hight carrying 227 passengers and 12 crew went missing in area near the South China Sea as it Hew from KuaIa Iumpur
to Beijing and was presumed to have crashed.
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Myanmar Business Today
mmbiztoday.com
REGIONAL BIZ
14
Chinu Luonches Privute Bunk Pilot Progrumme
Bank regulator approves 10 frms for private bank pilot
C
hina will launch pilot
programmes testing the
development of privately-
owned banks in Tianjin, Shang-
hai, Zhejiang and Guangdong,
the countrys bank regulator
Shang Fulin said last week.
The pilot, which was approved
by Chinas government in Janu-
ury, Is LIe hrsL LenLuLIve sLep by
the country to open its closely-
guarded banking sector to pri-
vate investors.
The China Banking Regula-
tory Commission named 10
companies it has approved to
participate in the pilot project.
These include e-commerce gi-
ants Alibaba and Tencent Hold-
ings Ltd both of which are
already competing with banks
for depositors by selling high-
yielding wealth management
products online.
n LIe pIIoL, hve bunks wIII be
established, each with two com-
panies as joint investors, the
CBRC said.
The other private companies
that CBRC approved are: auto
parts manufacturer Wanxiang
China Holdings Co Ltd; airline
operator JuneYao Group; di-
versIhed congIomeruLe osun
International Ltd; Shenzhen
Baiyetuan Investment Co Ltd,
the largest shareholder of Join-
care Pharmaceutical Industry
Group Co; Tianjin Shanghui In-
vestment Co Ltd, a subsidiary of
pharmaceutical conglomerate
Tasly Holding Group Co Ltd;
copper materials producer Hua-
bei Group; power plant equip-
ment producer Chint Group;
petrochemical and plastics con-
glomerate Huafeng Group.
Aiding smoll prms
Alibaba is applying for the
IIcence LIrougI ILs umIIuLed
SmuII und MIcrohnuncIuI Ser-
vices Group, which includes on-
line payment unit Alipay as well
as its shareholding in Alibabas
mIcro-hnunce unIL, ZIongun
Insurance, and Tianhong Asset
Management Co.
The Small and Micro Finan-
cial Services Group will apply
for the license together with
China Wanxiang Holding Co.
Ltd; we are currently preparing
the relevant application materi-
als so have no further informa-
tion to share at this time, an
Alibaba Small and Micro Fi-
nancial Services Group spokes-
woman told Reuters via email.
Wanxiang Holdings is part
of Hangzhou-based Wanxiang
Group, Chinas biggest auto
parts company built by billion-
aire Lu Guanqiu.
Tencent was not available for
immediate comment.
Economists have long decried
the tendency of Chinas state-
dominated banking system to
grant loans primarily to large
sLuLe-owned hrms, even us smuII-
and medium-sized-enterprises
(SMEs) account for 60 percent
of gross domestic product and
around 75 percent of new jobs.
BuL bunks und omcIuIs wurn
that even if regulators move ag-
gressively to permit privately-
owned banks, it wont provide
an immediate solution to SME
hnuncIng. Reuters
Myanmar Summary
Myanmar Summary
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.. ... .. ...q, ~~ ~ ~ . . , .
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q:~_~ .~~ ~. ._e. . Shang Fulin
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~ . . , ._~ ..:._e. ..: Alibaba
. Tencent Holdings Ltd ~._.
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.._.
S Koreu Lnemployment Rute Hits -Yr
High in Jobseeker Sorge
Number of people in work at highest level on record
S
outh Koreas seasonally
adjusted unemployment
spiked to a three-year
high in February as job seekers
ooded LIe Iubour murkeL und
the number of people in work
hit its highest level in 15 years
in an encouraging signal for the
countrys economy.
Data from South Koreas sta-
tistics agency showed last week
that the unemployment rate for
the month rose to 3.9 percent
from 3.2 percent in January.
An additional 308,800 peo-
ple entered the jobs market in
February the highest monthly
increase on record dating back
to June 1999 whereas only
112,800 jobs were newly cre-
ated.
The rate of people in employ-
ment out of the total population
Choonsik Yoo &
Se Young Lee
aged 15 or older rose to 60.6
percent in February, also the
highest since June 1999, from
60.4 percent in January, the
Statistics Korea data showed.
AII hgures ure udjusLed Ior seu-
sonal patterns.
While the February unem-
ployment rate hit its highest
since touching a same 3.9 per-
cent in March 2011, The data
suggests that the job market
overall is starting to improve
as the economy rebounds, said
HI Investment economist Park
Sang-hyun.
The government of President
Park Geun-hye is pushing to
boost employment, particularly
among women and the youth,
us purL oI ILs eorLs Lo ensure u
recovery in domestic demand.
The central bank currently
forecasts economic growth to
accelerate to 3.8 percent this
year from an estimated 2.8 per-
cent last year, in line with the
expected global economic re-
covery. Reuters
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~ .q:~ q .:_. . ~.~ ~ ~ ._._
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_e.._~:.._. .q._.
.~: ~ q .e:.. - .:q .~ .
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.:._~: . . q._ .
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Job seekers look at help-wanted advertisements at a job fair in Seoul.
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Myanmar Business Today
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REGIONAL BIZ
15
Myanmar Summary
Philippines Ico-Town Project Leuds Wuy
in Boilding Climute Chunge Resilience
W
hen Typhoon Hai-
yan (locally named
as Yolanda) swept
across the Philippines late last
year, killing more than 6,000
people, displacing more than 4
million, and causing nearly $1
billion in damage, it became the
third massive tropical storm to
hit the island nation in less than
12 months.
The ferocity of the typhoon
sparked speculation among the
media, politicians, and experts
that such extreme weather is a
direct consequence of climate
change (Haiyan is the most
powerful storm of its kind to
make landfall on record).
The Philippines is no stran-
ger to the adverse weather.
Droughts, heavy rainfall, land-
slides, and earthquakes regu-
larly disrupt day-to-day life,
said HyoYoul Kim, country rep-
resentative, Philippines, Global
Green Growth Institute (GGGI).
In this context, it is rec-
ognised as being among the
worlds most vulnerable coun-
tries to climate change.
Rising to the chollenge
In recent years, the Philip-
pines government has taken
action on this issue, passing the
Climate Change Act of 2009.
This legislation established the
Climate Change Commission
(CCC) as a centralised policy-
making body on issues related
to climate change.
The CCC helped the national
government adopt the Nation-
al Climate Change Adaptation
PIun, wIIcI IdenLIhes prIor-
ity areas to focus on for climate
change resilience. It has also
been tasked with assisting lo-
cal governments to prepare Lo-
cal Climate Change Adaptation
PIuns LIuL uddress specIhc IocuI
needs.
As purL oI LIIs eorL, CCC Ius
been working with the GGGI
on a project Demonstration
of Eco-town Framework in the
Philippines.
To be hnuIIsed In MurcI, LIe
project was designed to dem-
onstrate how at-risk munici-
palities can become ecologically
stable and economically resil-
ient to climate change.
A oulnerohle toun
The bulk of GGGIs work took
place in the town of San Vicente
in the province of Palawan, one
of the westernmost islands in
the Philippines.
San Vicente is a municipal-
ity of about 30,000 inhabit-
ants and has a total land area
Mike Sullivan of 165,798 hectares. The town
is highly vulnerable to sea-level
rIses, cousLuI InunduLIon, ood-
ing, and, conversely, drought.
n u pIuce wIere hsIIng und
farming make up nearly 60 per-
cent of all economic activity,
the increasing threat of climate
change has drastic implications
for its economy and food secu-
rity.
A high toll
The CCC and GGGI conduct-
ed climate change vulnerability
and risk assessments and envi-
ronmental and natural resource
accounting in multiple sectors,
including agriculture, coastal
and marine, forestry and health.
These analyses found, among
other things, that climate
change will likely cause de-
creased crop yield for farmers,
increased deaths among about
4,000 work animals, higher lev-
els of coastal erosion and sedi-
mentation that will threaten
the livelihoods of around 8,000
peopIe enguged In hsIIng, und
increased water-borne and vec-
tor-borne diseases.
The analysis also found that
San Vicente needs to strengthen
its response to climate change.
There are few locally-based ag-
rIcuILure specIuIIsLs und omcIuIs
to help farmers introduce al-
ternative, more resilient crops.
MeunwIIIe, LIe hsIery secLor
has not modernised its methods
and processing facilities, mak-
ing it all the more vulnerable
to the increasing pressures on
coastal and marine resources.
Based on the analysis, the
CCC-GGGI team, through con-
sultation with local and foreign
stakeholders and experts, sug-
gested an array of adaptation
measures for the town. Accord-
ing to a forthcoming report,
these measures were based on
eecLIveness, cosL, LecInIcuI
feasibility, social and cultural
feasibility, required time, and
sustainability and overall im-
pact.
Some of the recommendations
include modernising farming
practices to include weather
stations and small-scale irriga-
tion facilities, introduction of
more climate-resilient crops,
establishing sea walls and dikes,
setting up an early warning
system, involving the private
sector in coastal planning and
management, conducting train-
ing on disaster risk reduction
and management, and provid-
ing a clean and adequate water
supply system.
Climote proopng
The suggested measures
were presented to the munici-
pal government of San Vicente
to incorporate them into their
development planning, said
Kim.
This process is the so-called
'cIImuLe proohng` oI IocuI eco-
nomic development. In other
words, as San Vicente attempts
to grow and diversify its econo-
my in recent years there has
been a great push to attract
more tourism it must take
these adaptation measures into
account into every aspect of its
economic planning. Doing this,
according to the analysis car-
ried out by the CCC and GGGI,
will reduce the towns vulner-
ability to climate change.
On February 5, the Assembly
of San Vicente passed a resolu-
tion adopting the results of the
analysis undertaken by CCC
and GGGI, including the sug-
gested adaptation measures.
The Assembly also passed a
further resolution expressing
thanks and appreciation to the
CCC and GGGI for their work in
San Vicente.
The uog foruord
The CCC and GGGI are now
taking the lessons learned from
the Eco-town Framework and
applying them at the provin-
cial level. Dubbed the Eco-town
Scale-up, the project began in
late 2013 and will enhance cli-
mate resilience and promote
green growth in four provinces,
which could then be replicated
in provinces nationwide.
The Eco-town Framework ef-
fort received the support of the
Philippines, Benigno Aquino III
at a meeting January 22.
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, .,.,..|.q.~: ~.e,..,~.
._~: .~.~...q._.: ~..
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~ .~:~:.~~ . ~~ e~_~ .
._.:~ e....~:. ~~.~.
._ ~ ~:._~. ~. . .. , ~ .~. .
._._e..._.
~.e,..,~.._~: .~.._
..e:.:. ..q...:..:.. ~..
~..:.~..' .~.q:~.~.:.
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q:.~._.:...._~:_e.._~:.
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._ ~ ~:.~_. ., . .. , ~ .~. .
~_e.._. .~.~.q._.
e .. . . ._ q:. ~ .e:~ _.,
. .:.. ~~. .~~ .,_. _e. ~: . ...|
_.. ..~.,~~q:.:._.. ._._.
_. ..:.. ._.. . ~ .~ . .:.._
., . . .. . . , _e. .~ .,.. q .:_.
_e.._~:. Global Green Growth
Institute (GGGI) . e....
~ e .:.. e ~e ~ ~. ._e. . Hyo
Youl Kim ~ ._.:_~:..._.
~.~ .:.._~: e .. . . ._
~. : q:. ~ .~_ _ . . .. ~. . _e.
.:._~: .._. , .~._.:_~:.. ._ .
._~:.... . . .:.~~ . e .. . ~. .q
~ ~. .|_..,:~ ._eq .q, ~~ ~
~~ ...~ q:.~._.:...
.q: ~~...~..~ ~_.,.
_.. e....~:. q:.~._.:..
..q:.~:.q. .~..:q~.
_. ._e. ._ .q:. ~ ._.: .. . . q:
.~: .q . e .. . ~. .q~:. National
ClimateChangeAdaptation ~. ~.
~ ..: q ~ . q, ~.:~ ~. ....
_. . ~. .|~. ~. ~q:. ~ ._.: ..
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q._ -q e:.:.~ .~ . ~ .e: ~
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Local Climate Change Adaptation
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~.:~~~....._~: . . q._ .
As San Vicente attempts to grow and di-
versify its economy in recent years there
has been a great push to attract more
tourism it must take these adaptation
measures into account into every aspect of
its economic planning.
Survivors, desperate to Hy out of their Typhoon Haiyan-devastated town, wait outside a destroyed buiIding at TacIoban air-
port, the Philippines.
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INTERNATIONAL BIZ
16
LN Wurns Iood Secority A Risk to Asiu-Pucic
T
he world must in-
crease its food pro-
duction by 60 per-
cent by mid-century or
risk serious food shortag-
es that could bring social
unrest and civil wars, the
UN Food and Agriculture
Organization (FAO) said
last week.
Demand for food will
rise rapidly over the next
few decades as the world
population surpasses 9
billion and increasingly
wealthy people improve
their diets, consuming
more calories, said Hiroy-
uki Konuma, the assistant
director-general of FAO
AsIu-PucIhc, us LIe body
launched a one-week re-
gional food security con-
ference in Ulan Bator.
But as the need for more
food increases, the world
is spending less and less
money on agricultural re-
search, causing many sci-
entists to doubt whether
food production can keep
up with demand growth.
If we fail to meet our
goal and a food short-
age occurs, there will be
a high risk of social and
Stian Reklev
political unrest, civil wars
and terrorism, and world
security as a whole might
be uecLed, suId Konu-
ma.
The challenge is espe-
cially demanding in de-
veloping nations, which
need to boost crops by a
staggering 77 percent, he
said.
TIe AsIu-PucIhc wouId
be left with more than
half a billion chronically
hungry people even if the
region meets its millen-
nium development goal of
cutting that number to 12
percent of the population,
he said.
Despite progress made
In hgILIng gIobuI Iunger,
the world still has 842
million undernourished
people, according to FAO,
of which nearly two thirds
IIve In LIe AsIu-PucIhc.
One in four children un-
der hve yeurs oId ure
stunted due to malnutri-
tion.
The UN body outlined
two main options: in-
crease arable land areas
and boost productivity
rates. But available arable
land is almost fully ex-
ploited, and production
growth rates have been
lacklustre for the past two
decades.
During the green revo-
lution in the 1980s, pro-
ductivity rates for rice
and wheat increased by
3.5 percent annually, but
for the past 20 years the
rate has been stuck at 0.6
to 0.8 percent.
The growth rate needs
to be stable at around 1
percent if the world is to
have a theoretical chance
to avoid serious shortag-
es, said Konuma.
Water scarcity in big
food-producing nations
like China is worsening,
and many farmers are
increasingly tempted to
shift production from
food to bioenergy, a pop-
ular option to cut emis-
sions of climate-changing
greenhouse gases.
Climate change is wors-
ening the situation, as
more frequent extreme
weather events devastate
crops. In the past three
years, Australia, Canada,
China, Russia and the
United States have all suf-
fered big harvest losses
Irom oods und drougILs.
Cost is an additional
threat to food security,
according to the UN body.
High and volatile food
prices restrict poor peo-
ples access to food, while
high crude oil prices in-
uLe producLIon cosLs.
Reuters
Myanmar Summary
Myanmar Summary
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LS Tech Giunts' OHshore Cush Piles Iurn
Interest Irom Govt: Report
F
our of the big-
gest US technology
groups collectively
hold an estimated $124
billion in US Treasury
debL, mucI oI IL osIore,
earning them tax-free in-
terest, the UKs Bureau of
Investigative Journalism
(BIJ) said.
TIe hndIng meuns Ap-
ple Inc, Microsoft Corp,
Google Inc and Cisco
Systems Inc hold a large
proportion of the $254.9
billion held in their for-
eign subsidiaries in US
Treasuries, according to
securILIes hIIngs revIewed
by the London-based BIJ,
u noL-Ior-prohL news or-
ganisation.
Bringing the money
home would trigger a tax
bill, so the companies
keep IL osIore, purLIy Lo
fund foreign expansion
but also, executives say,
to avoid a tax hit.
Democratic party Sena-
tor Carl Levin, who has
campaigned for years
against tax avoidance,
was quoted saying by the
BIJ that if US corpora-
LIons InvesLed osIore
funds in US government
debt, this income should
face US taxes.
Those funds ought to
be treated as having been
repatriated and subject to
US tax, Levin said.
Corporations including
Apple have lobbied for
changes so they would
not have to pay US tax
on income earned out-
side the United States
and brought home. Many
other countries, including
Britain, only tax income
earned within their bor-
ders, though some inter-
national companies have
been accused of reducing
their bill via sophisticated
osIore uccounLIng ur-
rangements.
Some US companies
say a territorial type of
tax system would avoid
double taxation and en-
sure all businesses com-
pete on equal terms. Tax
campaigners say it would
encourage companies to
sIIIL prohLs overseus.
Google said it responded
Lo Lux IncenLIves oered
by governments while fol-
lowing tax rules in every
country where it operates.
The other companies de-
clined comment, but have
previously said they pay
all the tax they should.
Reuters
A Iabourer IIs a sack of wheat at a whoIesaIe grain market in the northern Indian city of Chandigarh.
A
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The FederaI Reserve buiIding in Washington BC.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INTERNATIONAL BIZ
17
Myanmar Summary
Norwuy Weulth Iond Ixumining Totul's Ithics
Fund could blacklist frms for corruption, environmental damage this year
N
orways sovereign
wealth fund is ex-
amining the oper-
uLIons oI oII hrm ToLuI In
Western Sahara, a disput-
ed region of North Africa
with a history of human
rights abuses, to ascer-
tain whether its activities
there are unethical.
The $850-billion fund,
which invests Norways
revenues from oil and gas
for future generations, in-
vests only in companies it
considers ethical, and has
bIuckIIsLed 6 hrms, In-
cluding makers of nucle-
ar arms, anti-personnel
landmines, cluster bombs
and tobacco.
It is one of the worlds
largest investors, with
holdings in 8,200 com-
panies, including a 2.06
percent Total stake worth
about $3 billion, which
makes it the French com-
panys fourth-biggest in-
vestor.
We are following the
work of Total in Western
Sahara closely, said Ola
Mestad, a law profes-
sor who has headed the
Norwegian funds ethics
council since 2010.
Total told Reuters its
operuLIons osIore In
Western Sahara, as in
other places where we
operate, are in line with
the applicable interna-
tional laws and standards
mentioned in our Code
of Conduct, in particular
those related to human
Gwladys Fouche
rights.
Mestad said the main is-
sue with Western Sahara,
which Morocco and Al-
geria-backed separatists
both claim, was ensuring
that the interests of the
local population, such as
the Sahrawis many of
whom are either exiled
or in refugee camps are
protected.
Total was awarded a li-
cence to explore for oil
und gus o WesLern Su-
hara in 2011 by Morocco,
which annexed the re-
gion in 1975 after colonial
power Spain withdrew,
and fought a war with
the separatists. In 1991,
u UN-brokered ceusehre
was reached on the un-
derstanding that a ref-
erendum would be held
on the regions fate. That
vote never took place.
Media reports and hu-
man rights organisations
say the dispute has result-
ed in frequent abuses, in-
cluding the displacement
of tens of thousands of
Sahrawi civilians.
The funds council on
ethics, which published
its 2013 annual report last
week, has recommended
the fund drop its invest-
ments in companies in
the past because of their
involvement in Western
Sahara.
In 2005 the fund sold its
stake in oil company Kerr
McGee, since the council
consIdered ILs osIore
exploration work there
strengthened the claims
of Morocco to sovereignty
over the territory, a claim
not recognised by the
United Nations. Kerr Mc-
Gee did not renew its con-
tract the following year.
In 2011 the fund sold
ILs sIures In hrms PoLusI
Corporation of Saskatch-
ewan and FMC Corpora-
tion for buying phosphate
from Western Sahara.
In December Total
signed a joint declaration
with Moroccos National
Bureau of Petroleum and
Mines in which the latter
emphasises its commit-
ment to complying with
the principles of the Char-
ter of the United Nations.
Total also signed a mem-
orandum of understand-
ing setting out corporate
social responsibility prin-
ciples for the reconnais-
sance period and any sub-
sequent phases.
SpeukIng uL IIs omce
at the University of Oslo,
lined with tomes on prop-
erty, trade and EU law,
Mestad said investors
should be more aware of
human rights issues when
investing in a company,
both for ethical reasons
and because it can pose a
risk to their investments.
In 2014 he said the
council on ethics would
also be looking at oil and
gus hrms operuLIng In
countries presenting a
risk of corruption and
could sell out of textile
companies that violate
workers rights.
He said multinationals
would probably not be di-
rectly responsible for the
worst labour conditions,
but their supply chains
could harbour abuses.
That is where there
could be a relation be-
tween really bad condi-
tions and a company in
which we are invested in,
he said. Reuters
LS Sorprises Oil Murket With Sule Irom Strutegic Reserve
Ayesha Rascoe &
Valerie Volcovici
T
he United States
wIII IoId LIe hrsL
test sale of crude
from its emergency oil
stockpile since 1990, of-
fering a modest 5 million
barrels in what some ob-
servers saw as a subtle
message to Russia from
the Obama administra-
tion.
The Energy Department
said the test sale had
been planned for months,
timed to meet demand
Irom rehners comIng ouL
of annual maintenance
cycles. But oil traders
noLed LIuL RussIu`s eorL
to take over the Crimea
region from Ukraine has
prompted calls for use
of booming US energy
resources to relieve de-
pendence on Russian
natural gas by Europe and
Ukraine.
Oil prices dipped to
their lowest levels in a
month after news of the
test sale.
OmcIuIs suId LIe reIeuse
would ensure that oil
stored in vast salt caverns
could still reach local re-
hners uecLed by recenL
changes in pipeline infra-
structure.
Due to the recent dra-
matic increase in domes-
tic crude oil production,
sIgnIhcunL cIunges In LIe
system have occurred,
department spokesman
Bill Gibbons said. The test
sale was needed to ap-
propriately assess the sys-
tems capabilities in the
event of a disruption, he
added.
Surging US shale oil
production has upended
the logistics of US crude
markets. Major pipelines
that traditionally moved
oil from the Gulf to the
Midwest have reversed
course, moving a glut of
shale oil from places like
North Dakota to points
south.
Analysts say President
Barack Obama has been
more willing than his pre-
decessors to tap the stra-
tegic reserve. Reuters
The logo of the French oil giant Total SA is seen at the entrance of the company headquarters in the La
Defense business district, west of Paris.
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Myanmar Summary
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
18
Myanmar Summary
Buluncing Yoor Suvings Needs
David Mayes
A
s I normally like to keep
an eye not just on the
markets but anything
reIevunL Lo LIe heId oI hnun-
cIuI udvIce, oILen hnd myseII
reudIng urLIcIes Irom oLIer h-
nancial planners like myself
to see if there is anything that
has changed, or possibly an-
other way of looking at things.
Recently, I was reading up on
education fees and it never fails
to astonish and also slightly
scare me to see how the statis-
tics around the cost seem to be
in a never-ending upward spi-
ral at an increasing rate. See-
ing as how we can only stretch
our earnings so far, the issue of
balancing retirement and edu-
cation needs can leave you feel-
Ing deuLed II noL downrIgIL
depressed.
I am not going to repeat the
hgures wus jusL reudIng be-
cause if you have a heart attack
before getting to the end of the
article my advice will not likely
be able to sink in. Let just say
that if you fund a four year
university bill out of pocket in
hILeen or so yeurs (ussumIng
you have small kids now) at an
overseas location such as Aus-
tralia or the US, the total bill
is expected to be an exorbitant
amount of money.
You may have thought that the
nest egg you have so far saved
up is a good start, but when re-
viewing the education situation
it can often become clear that
even saving at the upper band
of what a reasonable amount
of your discretionary income
would be, you are sure to have
a shortfall. This is a fact of life
that many, if not most, people
are facing in the world today.
We all want to give our chil-
dren the best opportunity in the
world, but when it comes time
Lo prIorILIsIng mosL hnuncIuI
planner agree that retirement
needs to take a priority. If you
cannot take care of yourself in
old age you risk becoming an
enormous burden on your chil-
dren over a potentially long pe-
riod of time. This will most like-
ly be the period of time where
they are trying to save towards
their own future liabilities of
retirement and education costs.
TIe dIerence beLween LIe II-
abilities of retirement and edu-
cation is that there tend to be
more options available to you in
order to get to that degree. Most
countries provide some sort of
hnuncIuI uId, cIIIdren cun sLudy
part time around a full time
job, and many employers are
even willing to kick in. Military
service, while not something
I would consider for my own
children, is still another route
to getting someone else to pick
up the tab. Obviously this is
less desirable than the old four
years of partying it up in a dorm
room concept of what going to
college is, but the costs today
compared to even a decade ago
are drastically higher. You can
expect that trend to continue.
Student loans can also help
Luke LIe burden o oI you wIIIe
helping the child gain a bit of
responsibility, and you can also
begin at a young age to try to
motivate your children to spire
towards academic or athletic
scholarships.
Sometimes it can be a good
idea to set up separate accounts
towards both fees so that you
are not tempted to raid your re-
tirement pot to fund an educa-
tion via a route that realistically
you cunnoL uord. WIen LIe
time for university comes, you
will know exactly how much you
can help your children with-
out dipping into the retirement
nest egg. There are many ways
to greatly reduce the costs of a
university fee, such as transfer-
ring credits from a cheap com-
munity college into a better
respected institution. You still
end up with the same school
on your resume. Knowing how
much you have earmarked for it
can make it a lot easier to come
up with a realistic plan.
David Mayes MBA provides
wealth management servic-
es to expatriates throughout
Southeast Asia, focusing on
UK Pension Transfers. He can
be reached at david.m@fara-
mond.com. Faramond UK is
regulated by the FCA and pro-
vides advice on pensions and
taxation.
Myanmar Summary
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Itulcementi Iyes Myunmur Investment
I
talian cement major
Italcementi is study-
ing the possibility of
entering the Myanmar
market in the next few
years, its chief executive
has said in a recent inter-
view.
Speaking to The Nation
about Italcementis growth
potential in the ASEAN
region, Carlo Pesenti said:
We are negotiating with
a local partner in Myan-
mar and also studying the
countrys Foreign Invest-
ment [Law].
Italcementi is already
Pann Nu active in Southeast Asia
through its Jalaprathan
Cement and Asia Ce-
ment operations in Thai-
land. Last year, Thailand
proved to be a particular
bright spot for Italcemen-
ti as turnover rose by 18.1
percent to 269.2 million
and the EBITDA moved
ahead by 58.8 percent to
51.5 million. Domestic
cement shipments ad-
vanced by 13.8 percent
as an additional kiln was
brought back on-stream.
Italcementi Group is
LIe hILI-IurgesL cemenL
producer in the world,
operating in 22 countries
on four continents, and
has an industrial network
of 53 cement plants, 10
grinding centres, seven
terminals, 449 concrete-
batching units and 115 ag-
gregates quarries.
In 2012 Italcementi
Group posted sales of
about 4.5 billion.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
19
Myanmar Summary
From page ... (Yoma)
From page ... (Yoma)
Singupore's Greut Iustern Becomes Iirst
Sootheust Asiun LiIe Insorer in Myunmur
S
ingapore-based Great
Eastern Life Assurance
Co Ld becume LIe hrsL
Southeast Asian life insurer
to be granted approval by the
Directorate of Investment
and Company Administration
(DICA) in Myanmar, the com-
pany said.
The insurer, which is a subsid-
iary of Singapores OCBC Bank,
LIe second IurgesL hnuncIuI ser-
vices group in Southeast Asia by
assets, opened its representa-
LIve omce In Yungon IusL week.
Chris Wei, group CEO of
Great Eastern Holdings, said,
We see tremendous opportu-
nities where we can support the
Myanmar authorities to devel-
op the local insurance industry.
These are extraordinary times
for Myanmar as its economy
continues to expand and open
up.
Wei said: As a market leader
in Singapore and Malaysia with
106 years of legacy and foot-
Nwe Zin
Dr Maung Maung Thein, Chairman of Insurance Business Supervisory Board and
Beputy Minister for Ministry of Finance, Union of Myanmar and Chris Wei, Croup
CEU, Creat Eastern HoIdings pop the champagne to mark ofciaI opening of the
Creat Eastern Myanmar Representative Ufce in Yangon.
print in emerging markets like
Indonesia, Vietnam and Bru-
nei, we are well-positioned to
contribute our experience and
expertise. The group also has a
joint venture in China.
Myanmar has a population of
over 60 million, with one of the
lowest insurance penetration
rates in Asia.
He suId LIe hrm Ius mucI
Lo oer In Lerms oI cusLomer
value proposition and that it
can play an important role to
help develop Myanmars insur-
ance industry through increas-
ing awareness as well as sharing
of knowledge and information
with the local operators.
With S$60.9 billion in assets
and around 4 million policy-
holders, it has three distribu-
tion channels a tied agency
force, bancassurance, and a
hnuncIuI udvIsory hrm, GreuL
Eastern Financial Advisers.
. ~:. . ~._.. ~ Great Eastern
Life Assurance Co Ltd ._ _.,.:
.- q..._..... ~.~.:.,
_~:....._:,. ..,...:q~.
.... ._ .. .. .~.q .~: ~:q
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The company and
EDFM will respectively
hold 85 percent and 15
percenL oI LIe coee busI-
ness which is expected
to require up to $20 mil-
lion of investment over
four years with the aim
of planting a total of ap-
proximately 3,700 acres
oI coee by LIe end oI LIe
fourth year. (Details on
this story in Page 7).
YSH signed another
deal to form a joint ven-
ture with First Myanmar
Investment Co Ltd (FMI)
and PMM Partners Ltd
(PMM) to supply UHT
dairy products to the lo-
cal consumer market in
Myanmar. The company
will hold 40 percent of the
dairy business, with FMI
holding 50 percent and
PMM holding the remain-
ing 10 percent.
The dairy business is
expected to require an
investment of up to $46
mIIIIon over LIe nexL hve
years, part of which will
be used to purchase mod-
ern world-class UHT pro-
cessing equipment.
Serge Pun & Associates
(Myanmar) Ltd (SPA), the
group`s umIIuLed compu-
ny, has signed an agree-
ment with the Ministry of
Livestock, Fisheries and
Rural Development to
become a major supplier
to the ministry and the
governments school milk
programme, supplying
UHT milk to Myanmar
school children.
The company also
signed a deal with Ja-
pans Kokubu & Co Ltd
and FMI to enter the cold
storage and logistics busi-
ness in Myanmar. The
cold chain business in-
tends to enable farmers to
better store and transport
their produce in the vast
agriculture industry in
Myanmar, YSH said.
The cold chain business
will initially build two key
distribution centres in
Myanmar and distribute
agricultural, seafood and
processed products via
IIgI-specIhcuLIon veII-
cles with chill and refrig-
eration capacity between
the distribution centres
and other principal cities
and industrial parks with-
in Myanmar.
Kokubu will hold 50
percent of the cold chain
business, YSH will hold
30 percent and FMI will
hold the remaining 20
percent. The initial capi-
tal investment for the cold
chain business is expected
to be $12 million.
Yoma also said that its
vehicle operating lease
and rental business,
Yoma Fleet Ltd, which
was set up in January, has
sIgned ILs hrsL LIree con-
tracts last month, with an
aggregate order value of
more than $1.5 million
placed for trucks, buses
and tractors.
The conglomerate also
announced plans to de-
velop several educational
facilities, including an in-
ternational school and a
local school, in two of its
major real estate projects
in Myanmar, costing an
estimated $52 million.
Establishing premium
schools in housing devel-
opments will add value
to the properties on of-
fer, said Rickards. From
a property developments
point of view, its clear
what happens to your
(property) project when
you announce a school
nearby, he said. Yoma
executive chairman Serge
Pun said the schools will
increase the value of Yo-
mas real estate by about
20 to 30 percent.
Yoma will partner two
British education groups
Dulwich College Inter-
national and Harrow In-
ternational Management
Services to establish the
schools, which will give
the company exposure
Lo un IndusLry LIuL oers
sIgnIhcunL growLI poLen-
tial after the Myanmar
opened up the education
sector to more private op-
erators in late 2012.
The private-school mar-
ket could be worth more
than $100 million in
zozq, IocuI reseurcI hrm
Thura Swiss research
shows, as Myanmar cur-
renLIy Ius onIy ubouL hve
international schools.
The pent-up demand for
world-class education
presents a great business
opportunity, Pun said.
In another project,
Yoma will partner First
Myanmar Investment Co
(FMI) to jointly develop
two adjacent plots at FMI
City, Yangon, and build
90 homes and 19,900 sq
ft of commercial leasing
space. The half a hectare
of land is valued at $3.2
million. YSH in January
spent up to $11.1 million
for a stake in Asia Bev-
erages Co to foray into
Myanmars fast-growing
consumer sector.
The expansion into
new sectors marks Yo-
mas plans to diversify
its source of income, Pun
said.
I hope Yoma, as a con-
glomerate, would have a
balanced income stream.
Real estate will always be
a pillar and, at this mo-
ment, contributes slightly
more than 90 percent,
he said. Id like to see at
least 50 percent of our
income stream coming
from non-real estate busi-
nesses.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
20
Myanmar Summary
Myanmar Summary
From page ...(Thai Bank)
last week. Violence and the pro-
tracted tension have been scar-
ing away tourists from Bangkok
and hurting domestic demand.
Twenty-three people have
been killed, most in shootings
and grenade blasts, since late
November.
Fitch Ratings said last week
prolonged and more intense
political tension could risk pro-
tracted economic weakness and
erosIon oI murkeL conhdence,
which could ultimately put
pressure on sovereign credit-
worthiness.
The government had planned
the spending on the projects
up to 2020, which would have
boosted growth and invest-
ment at a time of tepid global
demand.
Paiboon Kittisrikangwan, as-
sistant governor of the Bank of
Thailand, said the court deci-
sIon dId noL uecL ILs growLI
forecast this year as it had al-
ready expected less spending
on projects.
With the political crisis lin-
gering and infrastructure in-
vestment unable to aid growth,
Thailands hopes lay with ex-
ports, which equal about 60
percent of GDP but have been
weak for the past year.
The monetary policy commit-
tee said exports should gradu-
ally improve on the back of a
recovery in major economies.
Reuters
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Thai anti-government protesters wave nationaI Hags as they occupy Victory Monument in downtown Bangkok. Thai CentraI
Bank said months of political unrest has slowed down the second-largest economy in the ASEAN region.
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British MPs Seek Myunmur Aid Boost to 1oom
U
K aid to Myanmar
should almost double
to 100 million despite
concerns raised by campaigners
about the way the cash is used,
a committee has recommended.
MPs said they recognised that
groups such as Burma Cam-
paign UK believe the govern-
ment is naive in rewarding
the Myanmar leadership, which
they fear is not committed to
reform.
But the International Devel-
opment Committee claims pro-
gress will not happen by stand-
ing back, adopting a cynical
attitude to change, according
to British press reports.
It called for the Department
for International Development
to increase the aid allocation
for Myanmar from 60 mil-
lion to 100 million to go to-
wards funding the peace pro-
cess as well as education and
parliamentary strengthening
schemes.
The European Union lifted
trade and economic sanctions
against Myanmar last year in
recognition of the political re-
form programme introduced in
the former pariah state but sig-
nIhcunL InLernuLIonuI concerns
remain over its human rights
records.
SIgnIhcunL progress Ius been
made in Burma over the last few
years. While, a host of problems
remain, a key opportunity ex-
ists for UK development pro-
grammes to help deliver trans-
formational change. We must
seize the moment, Committee
chairman Sir Malcolm Bruce
Kyaw Min was quoted as saying in British
media.
We therefore support the UK
Governments approach to sup-
port reformers in the Burmese
Government to raise the coun-
try out of poverty, develop the
economy and build a society
that moves towards democracy.
Progress will be unpredicta-
ble and uneven, but supporting
the reform process by working
to deliver public services and
deveIop IIveIIIoods oers un-
precedented potential.
Some critics, notably Burma
Campaign UK, argue the UK is
naive to reward a Burmese Gov-
ernment which they believe is
not serious about reform. We
however do not believe that
progress will happen by stand-
ing back or adopting an unduly
sceptical approach.
International Development
Minister Alan Duncan said:
DID Ius mude sIgnIhcunL pro-
gress in Burma where we are
helping lift people out of pov-
erty, develop the economy and
build a fairer, more democratic
society that serves all its people
well. We are pleased the IDC
supports our approach.
Without doubt, we have an
opportunity to deliver further
transformational change and
we will be working across gov-
ernment to make the most of
this. We will give full considera-
tion to the IDCs recommenda-
tions, while ensuring we deliver
value for taxpayers money in
Burma and elsewhere.
Sir MaIcom Bruce, chairman of the Bepartment for InternationaI BeveIopment, said Myanmar has made signicant changes,
and whiIe a host of probIems remain, a key opportunity exists for UK deveIopment programs to heIp deIiver transformationaI
change.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
21
Myanmar Summary
Corses Or Riches: Whut Cun Oil, Gus And
Mining OHer Myunmur?
W
hen it comes to natu-
ral resources, Burma,
or Myanmar as it is
now known, has long been one
of the worlds foremost brands.
Think Burmese teak, rubies and
jade, not to mention Burmah
Oil and the countrys fabulous-
Iy vuIuubIe osIore gus heIds.
The miserable irony, of course,
is that Myanmars people have
seen IILLIe benehL Irom LIese
riches.
Blighted by half a century of
secretive military dictatorship,
Myanmar is perennially ranked
among the worlds most cor-
rupL, wILI ILs economy dehned
by nepotism, cronyism and the
sucking sound of stolen wealth
disappearing into private bank
accounts overseas. Natural as-
set sales generate substantial
revenues, yet a quarter of the
population lives in extreme pov-
erty, and 35 percent of children
under 5 are stunted as a result
of long-term malnutrition.
Over the past two years, how-
ever, President Thein Seins
government has embarked on
wide-ranging reforms, raising
Iopes LIuL LIIngs ure hnuIIy
changing for the better. These
shifts have paved the way for a
diplomatic reorientation away
from China and North Korea,
Juman Kubba towards the west. World lead-
ers including US President
Barack Obama and UK Prime
Minister David Cameron have
responded with landmark vis-
its to Myanmar and, across the
board, western countries are
lifting sanctions and pumping
aid money into the country.
One reform pledge that has
attracted international support
is Myanmars announcement
that it will open up its famously
opaque natural resources by
implementing a global trans-
parency standard, the Extrac-
tive Industries Transparency
Initiative (EITI). Last year, the
US announced a partnership
with Myanmar on extractives,
which focuses on supporting
EITI in Myanmar, and the UK,
Australia and the World Bank
are providing direct support
for the initiative. The country is
now preparing to submit its ap-
plication for EITI candidacy.
EITI is based on a simple idea.
Citizens should be able to see
the money generated from their
countrys natural resources and
to hold their governments to
account for the way it is used.
Last year, the remit of EITI was
revised to address concerns
that it did not deal with some of
the most common vehicles for
corruption. Publication of con-
tracts and of the individuals who
own and control companies that
bid for natural resource conces-
sions is now recommended, and
detailed reporting is required so
that money can be tracked from
individual projects through to
the government.
Whether or not Myanmar
joins EITI, measures like these
are desperately needed. As well
us reveuIIng wIo reuIIy benehLs
from the countrys resource
wealth, they would help citi-
zens check that important en-
vironmental, social and human
rights safeguards are included
in contracts from the outset,
and that companies abide by
them. Greater transparency
could also help protect more
responsible foreign investors
from being undercut by less
scrupulous competitors.
The situation is urgent: My-
unmur Is now uucLIonIng o
some of its most valuable na-
tional assets. The government is
poIsed Lo uwurd mujor osIore
petroleum blocks and recently
concluded a string of deals for
onshore concessions. The end
of sanctions is expected to ac-
celerate the exploitation of the
countrys land, forests and min-
erals, not least in fragile regions
wIere conIcLs beLween LIe
Ko Min, 26, manually extracts oil from one of three 300-foot deep wells he works on in the Minhla township of the Magwe
district. Everyday Ko Min makes around $30 extracting crude oil from three small wells after he bought rights to use them
for close to $1,000 from a farmer who owns the land. In Myanmar, an impoverished country rich with natural resources,
peopIe from poor communities nd ways to suppIement their income by expIoiting such resources, often using primitive and
dangerous methods.
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The end of sanctions is expected to accelerate
the exploitation of the countrys land, forests and
minerals, not least in fragile regions where
conflicts between the government and ethnic
armed groups remain unresolved.
Myunmur, Luos to Cooperute in
Bunking Sector
T
he Central Bank of Myanmar and Central Bank of Laos
will cooperate in the development of banking sector in
Myunmur, om cIuIs suId.
The memorandum of understanding (MoU) was signed be-
tween governors of the Central Bank of Myanmar and Cen-
tral Bank of Laos in Nay Pyi Taw last week.
The MoU covers cooperation in the area of banking indus-
Lry, hnuncIuI poIIcy und IoreIgn currency munugemenLs.
So Iur, over zo IoreIgn bunk represenLuLIve om ces Iuve
been set up in Myanmar, mainly from Brunei, Bangladesh,
Cambodia, China, India, Japan, Malaysia, Singapore, Thai-
land and Vietnam.
There are 19 private banks and three state-owned banks in
Myanmar.
Phyu Thit Lwin
Myanmar Summary
government and ethnic armed
groups remain unresolved. Full
transparency is essential if such
deveIopmenLs ure Lo benehL
rather than harm Myanmars
people.
Myanmars leaders are ea-
ger for recognition as bona
hde reIormers, buL Ior muny
of the countrys citizens, the
jury is still out. Ensuring that
the countrys enviable natural
wealth is managed openly, ac-
counLubIy und Ior LIe benehL oI
all Myanmars citizens would go
some way towards convincing
the doubters. Rigorous applica-
tion of the principles that the
new EITI standard enshrines
oers one oI LIe besL meuns oI
doing this.
Juman Kubba is an oil, gas
and mining specialist at Global
Witness, a London-based non-
governmental organisation.
Global Witness is an alternate
member of the Extractive In-
dustries Transparency Initia-
tive (EITI) board.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
INVESTMENT & FINANCE
22
Myanmar Summary
Myanmar Summary
AB Gives $qm to Improve Living
Conditions in Yangon and Mandalay
T
he Asian Development
Bank has administered
a fresh $4 million grant
funded by the Japan Fund for
Poverty Reduction (JFPR) in a
bid to improve water and sani-
tation in four townships in My-
anmars most populous cities
Yangon and Mandalay.
Living conditions in these
communities are dismal, leav-
ing residents vulnerable to
oodIng und cIronIc IeuILI Is-
sues, which is hindering their
ability to seize economic op-
portunities, said Linda Adams,
social development specialist in
ADBs Southeast Asia depart-
ment.
This grant will help empow-
er residents to transform their
neighbourhoods and support
partnerships with municipal of-
hcIuIs Lo creuLe more IncIusIve
cities.
A sIgnIhcunL porLIon oI My-
anmars urban population live
in resettlement areas created in
the late 1980s and early 1990s
with only basic services. Rapid
urban migration, accompany-
Phyu Thit Lwin ing the opening of the economy,
has placed a heavy burden on
these communities and exacer-
bated the realities of living with
Insum cIenL uccess Lo cIeun wu-
ter or any form of piped sewage
system. Many residents have
turned to costly private solu-
tions to buy water or remove
waste, contributing to overall
vulnerability and a cycle of de-
pendence on moneylenders.
The Manila-based lender said
high density areas can no long-
er safely manage the treatment
or disposal of human waste,
wastewater, or solid household
waste, resulting in frequent
oodIng und wuLerIoggIng LIuL
has pushed up the prevalence
of infections caused by expo-
sure to human waste and water-
borne diseases.
Building upon the success of
an ADB-funded pilot project
undertaken in 2013 in Daw-
bon township on the outskirts
of Yangon, two townships in
Yangon and two townships in
Mandalay will form commu-
nity development committees
in partnership with city, town-
ship and ward-level develop-
ment committees to prioritise,
plan, and deliver community
demand-driven infrastructure
improvements.
ADB said working directly
with communities to provide
regular waste disposal, con-
struction of sanitary latrines,
and desludging of septic tanks
cun reduce oodIng und Im-
prove community sanitation.
By 2018, the grant aims to
build 2,000 sanitary latrines,
construct 17 kilometres of
drains linked to city networks,
and build four community solid
waste systems in the four town-
ships.
Myanmar, Sri Lanka
Seek eeper Ties
M
yanmar and Sri Lanka are seeking cooperation in
economic development between the two countries.
The meeting on bilateral economic potential was
held in Nay Pyi Taw last week, attended by Myanmar Minis-
ter of Commerce U Win Myint and Sri Lankan Deputy Minis-
ter for Industry and Commerce Lakshman Wasantha Perera.
Win Myint called for bilateral cooperation between the two
countries in conducting exhibitions and workshops, as well
as promoting tourist industries of the two countries.
He said that the ministry is mainly responsible for import/
export sector of the country, focusing on ensuring smooth
transportation, easing export/import restrictions and pro-
moting trade.
Lakshman Wasantha Perera hoped to cooperate in pro-
ducIng vuIue-udded ugrIcuILuruI producLs und hnIsIed gems
which are the main exports of Myanmar and waste manage-
ment and recycling technology of Sri Lanka.
Shein Thu Aung
Myanmar Summary
Rapid urban migration, accompanying with the opening of Myanmar's economy, has placed a heavy burden on communities
and exacerbated the reaIities of Iiving with insufcient access of cIean water or any form of piped sewage system.
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Yungon Gov't Invites Ioreign und Locul
Intrepreneors to evelop Indostriul Istutes
Kyaw Min
T
he Yangon Region Gov-
ernment has invited po-
tential foreign or local
developers in a bid to develop
industrial estates around Yan-
gon up to international stand-
ards, an announcement said.
The projects will be carried out
on build-own-operate (BOO)
basis under the countrys new
Foreign Investment Law or the
Myanmar Citizens Investment
Law, the authorities said in a
notice, inviting proposals to de-
velop the estates.
Yangon Region Government
plans to develop industrial es-
tates at various places around
Yangon up to the international
standard, the announcement
said.
The authorities said these
industrial estates need to be
developed and managed by ex-
perienced developers and op-
erators which would lead to a
situation where international
standard facilities and infra-
structures could be assured and
better quality services could be
rendered to the investors or
tenants who establish and oper-
ate manufacturing units either
for export or domestic con-
sumption.
As the development sites of
planned industrial estates are
near the vicinity of Yangon area
it is intended that labour inten-
sive industries that have lower
electricity consumption and
have the least possible environ-
mental consequences could be
given more priority, the Yan-
gon Region Government said.
It said it also wants the land in
the industrial estates after de-
velopment to be sub-leased to
genuine investors or tenants at
uordubIe prIces.
Detailed terms and conditions
were made available during of-
hce Iours sInce IusL monLI uL
the admin department of the
Yangon Region Government of-
hce, IL suId.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
PROPERTY & REAL ESTATE
23
Myanmar Summary
Yomu und HSH Strike Shureholders'
Deal for Peninsula Yangon
T
he Hong Kong and
Shanghai Hotels
Ltd (HSH) and
Yoma Strategic Hold-
ings (YSH) Ltd have an-
nounced that the com-
panies have made a
dehnILIve sIureIoIders`
agreement for the pur-
pose of restoring the for-
mer Myanmar Railway
Company headquarters
into a hotel.
The agreement, subject
to conditions and approv-
al, will seek to redevelop
and restore the heritage
building, which dates
from the 1880s and is one
of the oldest existing colo-
nial buildings in Yangon.
The new hotel, to be
called The Peninsula Yan-
gon, will be HSHs 12
th
luxury hotel project, and
will be located on Bogyoke
Aung San road in the cen-
tral business district of
Yangon, one kilometre
north of the Yangon river
and adjacent to the tour-
ist attraction known as
Bogyoke Market or Scotts
Market.
Clement KM Kwok,
managing director and
cIIeI execuLIve omcer oI
HSH, said: Myanmar is
Nwe Zin
CIement Kwok, CEU of Hong Kong and Shanghai HoteIs Itd, and Serge Pun, executive chairman of Yoma Strategic HoIdings, sign
agreements to build Peninsula Yangon.
Y
S
H
one of the worlds most
exciting emerging mar-
kets and we see good po-
tential in this market as a
luxury travel and tourism
destination.
We are delighted to
partner with Yoma, who
share our long-term vi-
sion for the success of this
project and have a proven
track record of success-
ful investments in Myan-
mar.
Serge Pun, chairman
of Yoma Strategic Hold-
ings Ltd, said: The for-
mer Myanmar Railway
Company headquarters is
an iconic building in My-
anmar. We believe that
working with one of Asias
most established hotel
owner-operators and cre-
ator of world-class expe-
riences will be invaluable
in restoring the building
to its former glory, as well
as bring to Yangon a new
luxury experience.
Incorporated in 1866
and listed on the Hong
Kong Stock Exchange,
HSH is a holding com-
pany of a group which is
engaged in the owner-
ship, development and
management of hotels
and commercial and resi-
dential properties in Asia,
the US and Europe.
The Peninsula Hotels
portfolio comprises hotels
in Hong Kong, Shanghai,
Beijing, Tokyo, New York,
Chicago, Beverly Hills,
Bangkok, Manila and
Paris (expected opening
in 2014).
Listed on the Main
Board of the Singapore
Securities Exchange
Trading Ltd (SGX-ST),
YSH deals with real es-
tate, agriculture, automo-
tive and luxury tourism
businesses in Myanmar
and China. The groups
key property projects in
Yangon include Star City
and Pun Hlaing Golf Es-
tate.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
24
Myanmar Summary
Myanmar Summary
PROPERTY & REAL ESTATE
Lnited Overseus Poshes Aheud with
$q-m Myunmur Boy
S
ydney-based United Over-
seas Australia (UOA) Ltd
seems to be pushing ahead
with its entry into the Myan-
mar property market in a bid to
buoy its shareholder earnings
and equity value.
UOA said last week that it has
formally agreed to pay $24 mil-
lion for an 80 percent share of a
Myanmar company which owns
and has the rights to develop
2.414 acres of land in Dagon
township in Yangon.
A formal share purchase
agreement to acquire 80 per-
cent of the shares in a Myan-
mar incorporated company Wa
Minn Properties Development
Company Limited has now
been signed by the group Chair-
man and Chief Executive Of-
hcer CS Kong, UOA suId In u
stockmarket release.
TIe cosL oI LIe hrsL deveIop-
ment project comprising both
commercial and residential
areas is estimated at $80 mil-
Zayar Phyo lion, which will be funded from
InLernuI cusI ow, LIe compuny
said.
WA Minn Properties will pro-
ceed to apply for all necessary
regulatory and other approvals
for the share sale. This is ex-
pected to take up to six months.
In January UOA said it had
entered into a letter of agree-
ment to carry out due diligence
on the possibility of acquiring
a development site to allow the
company to enter the Myanmar
property development market.
United Overseas Australia re-
porLed u neL prohL oI $18 mII-
IIon In LIe zo1 hnuncIuI yeur.
M
in
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s
Ascott to ebot in Myunmur with New Property Openings
Somerset Kabar Aye Yangon will feature 153 apartments
S
ingapore-based serviced
apartment operator Ascott
has unveiled plans for its
hrsL properLy In Myunmur.
The company, which is whol-
ly-owned by real estate devel-
oper CapitaLand, has secured
ILs hrsL ever munugemenL con-
tract for a serviced residence in
Yangon, it said.
Due to open in early 2018,
Somerset Kabar Aye Yangon
will feature 153 apartments, in-
cluding studios, one-, two- and
three-bedroom units.
It will form part of a mixed-
use development on the junc-
tion of Kabar Aye Pagoda road
and Sayar San road a popular
restaurant and entertainment
area, 15 minutes drive from the
city centre.
Each apartment will come
equipped with kitchens and
separate living and dining ar-
eas, while communal facili-
ties will include a lounge, gym,
swimming pool and childrens
playground.
In addition, Ascott has signed
u munugemenL deuI Ior ILs hrsL
hotel in Wuhan. Located on
the Chinese citys Dongfeng
Avenue, Somerset Zhuankou
Wuhan will feature 245 studios,
one- and two-bedroom apart-
ments, plus meeting rooms,
Zayar Phyo
a business centre, lounge and
swimming pool. It is also sched-
uled to open in 2018.
The latest announcements
come as Ascott celebrates its
30th anniversary in 2014.
As Ascott celebrates 30
years of successful business,
we would like to thank all our
customers for their unwaver-
ing support. In 2013 alone, we
had over one million stays, of
wIIcI u sIgnIhcunL percenLuge
was from repeat guests and we
look forward to their continued
support, said Lee Chee Koon,
Ascotts CEO.
To enable our guests to enjoy
the comforts of home in more
destinations, we plan to open
58 properties across 12 coun-
tries by 2018, of which about
20 properties are scheduled to
open this year.
This years growth will include
the opening of the Ascott Sen-
tral Kuala Lumpur on March 21
and Ascott Midtown Suzhou in
April.
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Australia(UOA) ._ _., .: ~ . _. ._.
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Properties Development Company
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AustraIian property rm United Uverseas AustraIia (UUA) is eyeing Myanmar`s booming property market.
Ascotts Somerset Singapore.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
25
Myanmar Summary
Hyondui Motor to Luonch Iirst
Buttery-Powered Ilectric Cur in o16
Fuel-cell focused Hyundai answers calls for more zero-emission cars
H
yundai Motor Co, South
Koreas champion of fu-
el-cell electric vehicles
(EV), will answer calls for man-
ufacturers to make more zero-
emission cars by launching its
hrsL recIurgeubIe buLLery-pow-
ered vehicle in 2016.
Hyundai, like Japanese rival
Toyota Motor Corp, has long
concentrated on fuel-cell vehi-
cles powered by electricity gen-
erated using hydrogen, touting
their longer driving range and
sIorLer rehII LImes.
But like Toyota, Hyundai is
expundIng ILs oerIng by uIso
investing in battery-powered
curs - LIe sLupIe green oerIng
oI HyunduI umIIuLe KIu MoLors
Corp.
There is no clear direction
about which eco-friendly cars
will win. We are dividing the
roles of Hyundai and Kia, with
Hyundai launching fuel cell
cars and Kia focusing on elec-
tric cars, said Senior Vice Pres-
ident Lee Ki-sang, who leads
the eco-friendly car divisions of
both Hyundai and Kia.
But the time will come when
Hyunjoo Jin
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Kia will introduce a fuel-cell
car. Hyundai is also preparing
to launch a (battery-powered)
electric car in 2016.
Zero-emission vehicles are
likely to become a more fre-
quent sight as governments de-
vise environment-friendly ini-
tiatives. California, for instance,
requires auto makers produce
a certain percentage of zero-
emission vehicles as part of
LIeIr overuII eeL or buy credILs
from manufacturers who have
produced more.
Botterg-Pouered
Kia, 34 percent owned by
Hyundai, has favoured battery-
powered cars because they can
be charged at home as well as at
charging stations. Fuel-cell cars
musL be rehIIed wILI Iydrogen
onIy uL hIIIng sLuLIons.
So far, a lack of charging sta-
tions and relatively short driv-
ing ranges, as well as high
prices resulting from the cost of
batteries, has kept the battery-
powered EV market niche.
At a news conference last
week, Kia said it will start
building a battery-powered
version of its Soul compact in
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Motor Corp ~. e~.,~:.
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Aothorities Aims to Introdoce Newer Miniboses
T
he Central Supervisory
Committee for Motor Ve-
hicles and Vessels (CSC-
MVV) of Yangon region will join
hands with local companies to
sell minibuses by installments
Pann Nu starting from March 31, a top
depurLmenL omcIuI suId.
The move comes as the de-
partment aims to replace the
Hilux cars that currently ply the
streets of Yangon with newer,
bigger minibuses.
The Ministry of Transport ini-
tially launched an old car substi-
tution program in 2011 in a bid
to get rid of the ramshackle cars
that were ubiquitous in Yan-
gons street since the 90s. The
replace old with new program
brougIL In u ood oI ImporLed
cleaner, brand new Japanese
cars, but ironically contributed
Lo LIe recenL punIsIIng Lrumc
jams in the commercial hub of
the country.
The department aims to re-
place all the Hilux cars, which
are currently used as public
transport, and also increase the
number of minibuses on the
same routes, Chairman U Hla
Aung said.
The minibuses, of Hyundai
Global 900 brand, will be im-
ported from South Korea. Local
hrms HLoo umIIy, ucky um-
ily, General Armanthit and six
other companies will import the
minibuses, U Hla Aung said.
The authorities have also in-
troduced car sales on loans
through state-run banks to fa-
cilitate the purchase of the new
buses. The current plan allows
paying 30 percent down pay-
ment and the rest over two to
three years.
The Yangon region government
said it wants the buses to run on
compressed natural gas (CNG), a
cheaper and cleaner fuel that My-
anmar has in plenty.
According to CSCMVV, there
are 804 Hilux cars running in
46 routes in Yangon region.
Korea next month. The car will
be HyunduI-KIu`s hrsL buLLery-
powered EV export, with des-
tinations including the US and
Europe.
For this year, the global sales
target is 5,000 Soul EVs, said
Cho Yong-won, vice president
of Kias Domestic Marketing
Group. Reuters
Myanmar Summary
The road transport authorities aim to replace Yangons ramshackle cars with Hyundai minibuses.
S
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
26
INTIRNATIONAL AN OMISTIC ILIGHT SCHILLI
Fliggh htss ffroom Yanggon (RGNN) to Bangkok ((BKK) Fliggh htss ffroom Banggkok (BKKK) to Yaangon (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
PG 706 1 2 3 4 5 6 7 RGN BKK 7:15 9:30 Bangkok Airways DD4230 1 2 3 4 5 6 7 DMK RGN 06:30 07:55 NOK Airlines
DD4231 1 2 3 4 5 6 7 RGN DMK 8:00 9:45 NOK Airlines 8M336 1 2 3 4 5 6 7 BKK RGN 6:40 7:25 MAI
FD2752 1 2 3 4 5 6 7 RGN DMK 8:30 10:15 Thai AirAsia FD2751 1 2 3 4 5 6 7 DMK RGN 7:15 8:00 Thai AirAsia
8M335 1 2 3 4 5 6 7 RGN BKK 8:40 10:25 MAI TG303 1 2 3 4 5 6 7 BKK RGN 8:00 8:45 Thai Airways
TG304 1 2 3 4 5 6 7 RGN BKK 9:50 11:45 Thai Airways PG701 1 2 3 4 5 6 7 BKK RGN 8:50 9:40 Bangkok Airways
PG702 1 2 3 4 5 6 7 RGN BKK 10:45 12:40 Bangkok Airways FD2755 1 2 3 4 5 6 7 DMK RGN 11:35 12:20 Thai AirAsia
Y5-237 1 2 3 4 5 6 7 RGN BKK 18:05 19:50 Golden Myanmar Airlines PG707 1 2 3 4 5 6 7 BKK RGN 13:40 14:30 Bangkok Airways
TG302 1 2 3 4 5 6 7 RGN BKK 14:45 16:40 Thai Airways Y5-238 1 2 3 4 5 6 7 BKK RGN 21:10 21:55 Golden Myanmar Airlines
PG703 1 2 3 4 5 6 7 RGN BKK 15:20 17:15 Bangkok Airways FD2753 1 2 3 4 5 6 7 DMK RGN 16:35 17:20 Thai AirAsia
8M331 1 2 3 4 5 6 7 RGN BKK 16:30 18:15 MAI PG703 1 2 3 4 5 6 7 BKK RGN 16:45 17:35 Bangkok Airways
FD2754 1 2 3 4 5 6 7 RGN DMK 17:50 19:35 Thai AirAsia TG305 1 2 3 4 5 6 7 BKK RGN 17:55 18:40 Thai Airways
PG704 1 2 3 4 5 6 7 RGN BKK 18:25 20:20 Bangkok Airways DD4238 1 2 3 4 5 6 7 BKK RGN 19:30 20:15 NOK Airlines
TG306 1 2 3 4 5 6 7 RGN BKK 19:40 21:35 Thai Airways 8M332 1 2 3 4 5 6 7 BKK RGN 19:20 20:05 MAI
DD4239 1 2 3 4 5 6 7 RGN DMK 21:00 22:45 NOK Airlines PG705 1 2 3 4 5 6 7 BKK RGN 20:00 21:15 Bangkok Airways
FFliggh htss ffroom m Yangoon (RGN)) to Chiaang Maii (CNX) FFliggh htss ffroom m Chiangg Mai (CCNX) to YYangon (RGN)
W9-9607 4 7 RGN CNX 14:50 16:20 Air Bagan W9-9608 4 7 CNX RGN 17:20 17:50 Air Bagan
Flligghtss ffroom Yanggon (RGNN) to Sinngapore (SIN) Flligghtss ffroom Singaapore (SIN) to Yangon ((RGN)
Y5-233 1 2 3 4 5 6 7 RGN SIN 10:10 14:40 Golden Myanmar Airlines Y5-234 1 2 3 4 5 6 7 SIN RGN 15:35 17:05 Golden Myanmar Airlines
MI509 1 6 RGN SIN 0:25 5;00 SilkAir SQ998 1 2 3 4 5 6 7 SIN RGN 7:55 9:20 Singapore Airline
8M231 1 2 3 4 5 6 7 RGN SIN 8:30 13:00 MAI 8M6231/3K585 1 3 4 5 6 SIN RGN 9:10 10:40 Jetstar Asia
SQ997 1 2 3 4 5 6 7 RGN SIN 10:25 14:45 Singapore Airline 8M232 1 2 3 4 5 6 7 SIN RGN 14:10 15:40 MAI
8M6232/3K586 1 3 4 5 6 RGN SIN 11:30 16:05 Jetstar Asia MI518 1 2 3 4 5 6 7 SIN RGN 14:20 15:45 SilkAir
8M233 5 6 7 RGN SIN 13:45 18:15 MAI 8M235 5 6 7 SIN RGN 19:15 20:45 MAI
TR2827 1 6 7 RGN SIN 15:10 19:35 TigerAir TR2826 1 6 7 SIN RGN 13:00 14:30 TigerAir
TR2827 2 3 4 5 RGN SIN 17:10 21:35 TigerAir TR2826 2 3 4 5 SIN RGN 15:00 16:30 TigerAir
MI517 1 2 3 4 5 6 7 RGN SIN 16:40 21:15 SilkAir MI520 5 7 SIN RGN 22:10 23:35 SilkAir
FFliightts frromm Yangonn (RGN) tto Kualaa Lumpuur (KUL) Fligghtts frro om m Kuala LLumpur (KUL)too Yangonn (RGN)
AK1427 1 2 3 4 5 6 7 RGN KUL 8:30 12:50 AirAsia AK1426 1 2 3 4 5 6 7 KUL RGN 6:55 8:00 AirAsia
8M501 1 2 3 4 5 6 7 RGN KUL 8:55 12:55 MAI MH740 1 2 3 4 5 6 7 KUL RGN 10:05 11:15 Malaysia Airlines
MH741 1 2 3 4 5 6 7 RGN KUL 12:15 16:30 Malaysia Airlines 8M502 1 2 3 4 5 6 7 KUL RGN 14:00 15:00 MAI
Fligghtts frrom Yanngon (RGGN) to HHanoi (HHAN) Fligghtts frrom Hannoi (HANN) to Yanngon (RRGN)
VN956 1 3 5 6 7 RGN HAN 19:10 21:30 Vietnam Airlines VN957 1 3 5 6 7 HAN RGN 16:35 18:10 Vietnam Airlines
Flliggh htss ffroom m Yangon (RGN) to Ho CChi Minhh (SGN) Flliggh htss ffroom m Ho Chii Minh (SSGN) to Yangonn (RGN)
VN942 2 4 7 RGN SGN 14:25 17:10 Vietnam Airlines VN943 2 4 7 SGN RGN 11:40 13:25 Vietnam Airlines
Flligghtss ffrom Yanngon (RGGN) to TTaipei (TTPE) Flligghtss ffrom Taipei (TPEE) to Yanngon (RGN)
CI7916 1 2 3 4 5 6 RGN TPE 10:50 16:10 China Airline CI7915 1 2 3 4 5 6 7 TPE RGN 7:15 10:05 China Airline
BR288 2 5 6 RGN TPE 11:35 17:20 EVA Air BR287 2 5 6 TPE RGN 7:30 10:35 EVA Air
Flliggh htss ffroom Yanggon (RGNN) to Kunming(KMG) Flliggh htss ffroom Kunmming(KMMG) to Yangon ((RGN)
CA906 2 3 4 6 7 RGN KMG 14:15 17:35 Air China CA905 2 3 4 6 7 KMG RGN 12:40 13:15 Air China
MU2032 1 2 3 4 5 6 7 RGN KMG 14:40 17:55 China Eastern MU2031 1 2 3 4 5 6 7 KMG RGN 13:30 14:00 China Eastern
MU2012 3 6 RGN KMG 12:20 18:10 China Eastern (via NNG) MU2011 3 6 KMG RGN 8:25 11:30 China Eastern (via NNG)
Flligghtss from Yanngon (RGGN) to BBeijing (BJS) Flligghtss from Beijjing (BJSS) to Yanngon (RRGN)
CA906 2 3 4 6 7 RGN BJS 14:15 21:55 Air China (via KMG) CA905 2 3 4 6 7 BJS RGN 8:05 13:15 Air China (via KMG)
Fliggh htss ffroom Yanggon (RGNN) to Naanning (NNG) Fliggh htss ffroom Nannning (NNNG) to Yaangon ((RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
MU2012 3 6 RGN NNG 12:20 16:25 China Eastern MU2011 3 6 NNG RGN 10:15 11:30 China Eastern
FFliggh htss ffroom m Yangoon (RGN)) to Honng Kong (HKG) HHonng g KKoong (HKG) Flights from Yaangon ((RGN)
KA251 1 2 4 6 RGN HKG 1:10 5:35 Dragon Air KA250 1 3 5 7 HKG RGN 21:50 23:45 Dragon Air
*PPleaasee noote thee dday change for the deparrture time too Hong Kongg.
Flliggh htss ffroom m Yangon (RGN) to Guanng Zhouu (CAN) Flliggh htss ffroom m Guang Zhou (CCAN) to Yangonn (RGN)
8M711 2 4 7 RGN CAN 8:40 13:15 MAI CZ3055 3 6 CAN RGN 8:40 10:30 China Southern Airlines
CZ3056 3 6 RGN CAN 11:20 15:50 China Southern Airline 8M712 2 4 7 CAN RGN 14:15 15:45 MAI
CZ3056 1 5 RGN CAN 17:40 22:15 China Southern Airline CZ3055 1 5 CAN RGN 14:45 16:35 China Southern Airlines
FFlighhts ffroom Yanggon (RGN) to Koolkata (CCCU) FFlighhts ffroom Kolkkata (CCUU) to Yaangon (RRGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
AI228 5 RGN CCU 18:45 19:45 Air India AI227 1 5 CCU RGN 10:35 13:20 Air India
AI234 1 5 RGN CCU 13:40 16:55 Air India (via GAY) AI233 5 CCU RGN 13:30 18:00 Air India (via GAY)
Fliggh htss ffrom Yanngon (RGGN) to GGaya (GAAY) Fliggh htss ffrom Gayya (GAY) to Yanngon (RGGN)
8M 601 1 3 5 6 RGN GAY 10:30 11:50 MAI 8M 602 1 3 5 6 GAY RGN 12:50 16:00 MAI
AI234 1 5 RGN GAY 13:40 15:00 Air India AI233 5 GAY RGN 15:00 18:00 Air India
Fligghtts frrom Yanngon (RGGN) to TTokyo (NNRT) FFliightts frrom Tokkyo (NRTT) to Yaangon (RRGN)
NH914 1 3 6 RGN NRT 22:00 06:40+1 ALL NIPPON Airways NH913 1 3 6 NRT RGN 11:10 17:05 ALL NIPPON Airways
FFliggh htss ffrom Yanngon (RGGN) to SSeoul (ICCN) FFliggh htss ffrom Seooul (ICN)) to Yanngon (RGGN)
KE472 1 3 5 7 RGN ICN 0:05 8:00 Korean Air KE471 1 2 3 4 5 6 7 ICN RGN 18:40 22:55 Korean Air
OZ7463 4 7 RGN ICN 0:50 8:50 Asiana OZ4753 3 6 ICN RGN 19:30 23:40 Asiana
Flligghtss ffrom Yanngon (RGGN) to DDoha (DOOH) Flightts frrom Dohha (DOH) to Yangon (RRGN)
QR619 1 2 3 4 5 6 7 RGN DOH 8:00 11:45 Qatar Airways QR618 1 2 3 4 5 6 7 DOH RGN 21:05 06:29+1 Qatar Airways
Flliggh htss ffroom m Yangon (RGN) to Nay Pyi Taww (NYT) Flliggh htss ffroom m Nay Pyyi Taw (NNYT) to Yangonn (RGN)
Flight No. DDayss From To ETD ETA Operated by: Flight No. DDayss From To ETD ETA Operated by:
FMI-A1 1 2 3 4 5 RGN NYT 7:30 8:30 FMI Air Charter FMI-A2 1 2 3 4 5 NYT RGN 8:50 9:50 FMI Air Charter
FMI-B1 1 2 3 4 5 RGN NYT 11:30 12:30 FMI Air Charter FMI-B2 1 2 3 4 5 NYT RGN 13:00 14:00 FMI Air Charter
FMI-C1 1 2 3 4 5 RGN NYT 16:30 17:30 FMI Air Charter FMI-C2 1 2 3 4 5 NYT RGN 18:00 19:00 FMI Air Charter
FMI-A1 6 RGN NYT 8:00 9:00 FMI Air Charter FMI-A2 6 NYT RGN 10:00 11:00 FMI Air Charter
FMI-A1 7 RGN NYT 15:30 16:30 FMI Air Charter FMI-A2 7 NYT RGN 17:00 18:00 FMI Air Charter
FFliightts frrom Yangoon (RGN) to Manndalay ((MDY) FFliightts frrom Manddalay (MDDY) to YYangon (RGN)
Y5-234 1 2 3 4 5 6 7 RGN MDY 6:15 7:30 Golden Myanmar Airlines Y5-233 1 2 3 4 5 6 7 MDY RGN 8:10 9:25 Golden Myanmar Airlines
YH 909 2 4 6 7 RGN MDY 6:30 8:10 Yangon Airways YH 910 1 3 MDY RGN 7:40 10:30 Yangon Airways
YH 917 1 2 3 4 5 6 7 RGN MDY 6:10 8:30 Yangon Airways YH 918 1 2 3 4 6 7 MDY RGN 8:30 10:25 Yangon Airways
YH 727 1 5 RGN MDY 11:15 13:25 Yangon Airways YH 728 1 5 MDY RGN 9:10 11:05 Yangon Airways
YH 731 1 2 3 4 5 6 7 RGN MDY 15:00 17:10 Yangon Airways YH 732 1 2 3 4 5 6 MDY RGN 17:10 19:15 Yangon Airways
W9 501 1 2 3 4 RGN MDY 6:00 7:25 Air Bagan W9 502 1 2 3 4 MDY RGN 16:10 18:15 Air Bagan
K7 222 1 2 3 4 5 6 7 RGN MDY 6:30 8:40 Air KBZ K7 223 1 2 3 4 5 6 7 MDY RGN 9:00 11:05 Air KBZ
YJ 201 1 2 3 4 5 6 7 RGN MDY 11:30 12:55 Asian Wings YJ 202 1 2 3 4 5 6 7 MDY RGN 16:00 17:25 Asian Wings
Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday Days - (1) Monday (2) TTueesdaay (33) WWeddnessdaay (4) Thursdayy (5) Friday (6) SSaturday (7) Suunday
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
AUTOMOBILE
27
Myanmar Summary
Toyotu Gives Jupun Workers
Biggest Pay Raise in 21 Years
T
oyota Motor Corp said
it will give its Japan-
based workers their big-
gest pay raise in 21 years in the
year starting in April, heeding a
government call to bolster the
economy by sharing its surging
prohL wILI workers.
Toyota will raise its monthly
base pay for workers by 2,700
yen ($26.17) on average, or
about 0.8 percent of total
monLIIy puy, murkIng LIe hrsL
increase in base wages in six
years but falling short of its un-
ions demand for a 4,000 yen
increase.
Many of Japans leading in-
dustries announced the results
Maki Shiraki & Yoko Kubota of annual wage negotiations
last week, amid pressure from
Prime Minister Shinzo Abe for
generous raises that could boost
household spending and help to
pull the worlds third-biggest
economy out of two decades of
deuLIon.
There is a certain role that
(Toyotas) labour and manage-
menL ure expecLed Lo IuIhI In
order for the Japanese economy
Lo sLep ouL oI deuLIon und uL-
tain a virtuous cycle, Toyota
SenIor MunugIng Omcer NuokI
Miyazaki told reporters at the
auto makers central Japan
headquarters.
While we have that in mind
each year during negotiations,
this year that was a little bit
more important than usual.
Toyota, the worlds best-sell-
ing car maker, expects record
prohL Ior LIe yeur Lo MurcI 1,
helped by a weakening yen that
Ius boosLed LIe prohLubIIILy oI
its export business.
Including seniority pay of
7,300 yen, Toyota is giving
workers their biggest monthly
raise since 1993. Adding in the
average annual bonus payment
of 2.44 million yen brings the
total rise in compensation for
the year to about 7.6 percent
from a year ago.
Oers vurIed wILIIn LIe uuLo
industry, however.
Nissan Motor Co, Japans
No.2 carmaker by global sales
volume, said it will increase its
Toyota Motor Corp ._ .,
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monthly base pay by 3,500 yen
und oer bonuses equIvuIenL
to 5.6 months of wages, fully
meeting its unions requests.
But Daihatsu Motor Co, a
Toyota group company that
specialises in small cars, said it
wouId oer u more modesL buse
pay rise of only 800 yen, citing
increased competition in Japan
and a slowdown in Indonesia.
Yasunobu Aihara, the presi-
dent of the Confederation of Ja-
pan Automobile Workers Un-
ions, said he saw the pay rises
us u sIgnIhcunL sLep In IIILIng LIe
economy Irom deuLIon.
We hope that this will spread
widely across the automotive
industry, including small and
mid-sized companies and irreg-
ular workers, he told reporters.
Japanese electronics com-
panies including Hitachi Ltd,
the largest manufacturing em-
ployer in Japan with more than
200,000 workers, and Pana-
sonic Corp both said they would
boost their monthly base wage
by 2,000 yen, half of what their
unions requested. Reuters
Myanmar Summary
Sozoki, Toyotu Bid Ior Thiluwu MunoIuctoring Iucility
J
apanese carmakers Suzuki
and Toyota are bidding for
parts and manufacturing
facilities in the Thilawa Special
Economic Zone (SEZ), accord-
ing to Myanmar Investment
Commission (MIC).
Aung Naing Oo, director gen-
eral of the Myanmar Invest-
ment Commission, said the
two Japanese auto giants and
France-based auto parts manu-
facturer Lafarge have all made
proposals to build facilities in
the SEZ, which is a joint venture
between Myanmar and Japan.
Thilawa SEZ, which will
house high-tech and labour-
intensive industries, is touted
as the most-advanced of several
Kyaw Min
foreign investment-driven SEZ
projects in Myanmar, and is ex-
pected to have state-of-the-art
infrastructure.
The Japanese-backed project
Is currenLIy In LIe hrsL pIuse oI
construction and will start com-
mercial run in mid-2015, the
zones management committee
said last month. The committee
expects Thilawa to create nearly
200,000 jobs and double for-
eign investment in the 2014-15
hscuI yeur.
The committee also an-
nounced to sell 2.145 million
shares of Thilawa SEZ in a bid
to raise $21.8 million to fund
LIe hrsL pIuse oI consLrucLIon
of the project.
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._ Lafarge ~._ _.,.:..
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.e: ..: q ~ .,..:. .~|~ .. .. :.
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:..~ _...:.._~:. _.,.:
q..._.....~:.q ,_~:..q...
.._e.. ..~:..~ ._.:_~:..
._.
Construction workers demonstrate with heavy tractors during the commencement
of Thilawa SEZ Project in Yangon. Japanese auto giants Suzuki and Toyota are bid-
ding for parts and manufacturing facilities in the SEZ, Myanmar Investment Com-
mission (MIC) said.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
28
IT & TELECOM
From page ... (Lntrepreteur)
From page ... (Lntrepreteur)
sumers in
Myanmar have a pre-paid mo-
bile service plan, which means
that telco companies have to
constantly encourage their con-
sumers Lo reLurn Lo rehII LIeIr
SIM cards.
Longer-term deoelopment
Of course, it is still early days
in the country. Nguyen says
that, no one really knows any-
one there since it has been so
closed. Everyone is trying to un-
derstand what is going on and
what the consumer mindset is.
She also hopes to build a pipe-
line of female engineers into
the startup ecosystem. She says
that the pipeline for female
engineers is actually higher
than that for males, but many
women dont go on to work in
technology, but instead end up
working in other roles. She is
hoping to develop better out-
lets, and catch students shortly
after graduation before they are
lost in the labour market.
As with any startup, there are
always clouds of risk on the ho-
rizon. Myanmars government
has been supportive of open-
ing the internet, but as the sto-
ries out of Ukraine, Venezuela,
and Thailand can attest, events
on the ground can change very
rapidly. While millions of con-
sumers in Myanmar will gain
access to the internet in the
next few years, there is no tell-
ing how they may behave or
what they might desire. That is
the excitement of building on
the frontier, though, and people
like Rita Nguyen wouldnt have
it any other way. Techcrunch
The Imergence oI "Appcessories
in The Smurtphone Iru
W
hile smartphones
are common in life,
various niche mar-
kets surrounding it seem to be
emerging, with many idea prod-
ucts which enrich the smart life
are getting popular in the mar-
ket.
For example, South Korean
electronics giant LGs Pocket
Photo appcessory (Applica-
tion + Accessory), which is the
worId`s hrsL und smuIIesL mobIIe
printer, can print pictures in
the smartphone. Pocket Photo
has an instant camera through
which mobile users can select
pictures to print out. It also
does not require ink but applies
Zero Ink (ZINK) methodol-
ogy, thus cutting costs. It costs
about K5,000 ($5) per pack
which is 50 percent less than
that of instant camera. Pocket
Photo comes with a compact
dimension of 7.2x12.1x2.4cm
and is optimised for portability,
weighing 212 grams.
Kinam Lee from LG Myanmar
Mobile communications de-
partment said that the Pocket
Photo was created based on
consumer needs, and its popu-
larity in the market is continu-
ing. He said LG leads the mo-
bile photo printer market while
the market is still growing. In
John Jun South Korea, the Pocket Photo
sold about 5,000 per month
in 2013 and Pocket Photo II, a
slimmer and improved version,
was introduced in January,
priced about K150,000 ($150).
However, in Myanmar, Pocket
Photo has not drawn that much
attention because it is sold in
very limited sales outlets. How-
ever, the company said visitors
who came to LG brand shop
and showroom were impressed
with this portable mobile print-
er us weII us WIh und BIueLooLI
docking speakers. Zaw Tun
Aung, a marketing professional
and volunteer teacher, said one
of the best advantages of Pocket
Photo is inkless printing and
portability. He said that availa-
bility and advertising should be
implemented to let Myanmar
people know of this product.
There are many digital printing
shops but their computer sys-
tem is too inferior to print out
mobile phone users pictures.
With soaring smartphone de-
mand, other smart devices such
as Pico pocket projector are also
drawing mobile users atten-
tion. Another ultra slim port-
able projector, Smart Beam, has
seen continuous growth in sales.
Even some smartphone has a
built-in OHP (Overhead Pro-
jection) feature to adapt to us-
ers` specIhc needs. SmurL Beum,
from SKT, weighs only 129gm,
4.6cmx4.6cm in dimensions, and
is priced at about $200.
Another South Korean giant
Samsung integrated smart-
phone and appcessories busi-
ness to break through its stag-
nated sales by exploring the
niche market. Samsung intro-
duced Mobile Console Appli-
cation which integrated ap-
pcessory and game pad. This
game pad can attach to 4 to 6.3-
inch Galaxy smartphones and
can be used as game consoles,
allowing users to skip tapping
screens. Taiwans HTCs Me-
dia Link provides mobile users
with optimised media and game
play for its smartphone by plug-
ging it into TV.
Appcessories future and mar-
ket strongly rely on idea and
creativity. Many contents pro-
viders use crowdfunding to
gather investment through SNS
or online. Crowdfunding is a
new terminology which com-
bines crowd and funding. This
new concept helps hundreds of
inventions and ideas to materi-
alise as products or services.
According to Tech Crunch, the
Poppy Viewer, a viewer which
enables iPhone users to watch
3D videos and pictures, suc-
cessfully enticed $160,000 for
investment through this crowd-
funding method.
Myanmar Summary
There was so little infrastructure, but
there was so much passion and inter-
est in technology, and so much of it
was untapped and unfocused.
Squar Youth Festival in Yangon.
LGs Pocket photo printer.
H
J
K
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methodology ~ ~.._.:.._
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
IT & TELECOM
29
Myanmar Summary
Myanmar Summary
Online Reul Istute PlutIorm Cluims to
Torn "Murket Leuder in Myunmur
O
nline real estate plat-
form House.com.mm, a
part of German online
start-up incubator Rocket In-
ternet, recently claimed that it
is now the leader in Myanmars
online real estate marketplace.
The company said House.
com.mm has seen tremendous
growth over the last months,
and that Myanmar will be one
of the key real estate players
for Lamudi, the name which
Rocket Internets real estate
websites go by globally. In My-
anmar, Lamudi goes by House.
com.mm.
Michiel Bakker, country man-
ager at House.com.mm, said:
Many people think that be-
ing an internet platform in a
country where there is such low
penetration would be futile,
however for us it is the polar
opposite.
The company said Myanmars
current internet penetration is
on the rise and the website sees
that an increasing amount of
its visitors is driven by mobile
usage and accessing properties
through its newly released mo-
bile website.
Founded in 2012, the compa-
ny, wIIcI oers seIIers, buyers,
IundIords und renLers Lo hnd
homes, land and commercial
properties online, said it had
reached more than 250,000
pageviews and 2,000 new
properties online in a month.
It said it has more than 4,000
total properties online, and it
is rapidly overtaking all other
online players in the real estate
cIussIheds.
Pann Nu The company told
the media at a press
conference that it is
currently partners
with large property
agents and devel-
opers in Myanmar
including Asia Land
Real Estate, Soe San
(lynn) and Shine
Construction.
We have spoken
with agents, buyers
and renters and its
great to experience
that a website like
this really works in
Myanmar, Bakker
said.
In Myanmar of-
Ine pubIIcuLIons
have dominated the
real estate classi-
heds Ior yeurs wILI
short ads for each
property. A channel
sIIIL Irom om Ine
to online property advertise-
ments as seen elsewhere in Asia
is about to happen in Myanmar
too, the company said.
A website which is complete-
ly free, always accessible from
your phone and easy-to-use in
Myanmar and English is a clear
revolution for the Myanmar
market. Even before visiting a
property in real-life users can
experience a property by read-
ing the description and brows-
ing through photos, Bakker
said.
Lamudi has recently expand-
ed its real estate platforms into
Pakistan, Bangladesh, Indone-
sia and the Philippines coun-
tries associated with increas-
IngIy ourIsIIng economIes und
booming real estate industries.
The online communities in
these countries are also rapidly
growing.
We are seeing huge inter-
esL In LIe cIussIheds IndusLry
within Asia, which indicates
how important a continent it is
to fully penetrate. We already
achieved market leadership
in Myanmar and expect more
Asian countries to follow soon,
Bakker said.
The company says its business
platform operates under a high
level of transparency through
professional photos, updated
listings, detailed descriptions,
reports and rankings for its
properties in each market.
Founded in Berlin in 2007 by
the Samwer brothers, Rocket
Internets business model is to
identify successful internet ven-
tures from other countries (of-
ten the United States) and rep-
licate them in predominantly
emerging markets.
In July 2013, the company
raised $400 million from an in-
vestor syndicate led by Russian
billionaire Leonard Blavatnik,
SwedIsI InvesLmenL hrm KIn-
nevik and JP Morgan. This is in
addition to over $1 billion that
Rocket raised in 2012.
Rocket has now over 150
websites worldwide in over 40
countries. In Myanmar, the
company operates other plat-
forms such as Motors.com.mm,
Ads.com.mm, Work.com.mm
and Kaymu.com.mm.
Ooredoo Introdoces MobileMonduy to Myunmur
O
oredoo said it has in-
troduced the global
networking forum Mo-
bileMonday (MoMo) in Myan-
mar through its Ideabox pro-
gramme.
MoMo, which began in Hel-
sinki, Finland in 2000, is an
open community platform of
mobile industry developers
and individuals fostering brand
neutral cooperation and cross-
border P2P business opportu-
nities through live networking
events to demo products, share
ideas and discuss trends from
both local and global markets.
TIe LeIecom hrm suId LIe In-
troduction of MoMo will help
foster local talent and sew the
initial seeds of a vibrant ICT sec-
Phyu Thit Lwin
tor that will form a cornerstone
of economic development.
Ross Cormack, CEO of Oore-
doo Myanmar, said, This is the
hrsL oI u number oI InILIuLIves Lo
be rolled out under the Ideabox
banner. ... in bringing concepts
like MobileMonday to Myan-
mar will pay dividends for the
ICT sector and wider economy
for years to come.
Ooredoo said MobileMonday
will help foster an open and
independent innovation plat-
form within the mobile sector,
facilitate industry networking
between small and large com-
panies and individuals and
provide opportunities for local
members Lo eecLIveIy purLIcI-
pate in global initiatives.
Cormack said, The global
mobile sector is evolving at an
incredible pace. Myanmar has
a unique opportunity to take a
giant stride forwards and initia-
tives like this will help to facili-
tate that.
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_., .:. ~ e .:. . e ., .,:
Michiel Bakker ~ ._.:._.
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.q._.
Ooredoo . _.,.:.~ ,.-
Ideabox ~.~.~:._e ~.:..
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Monday (MoMo) ~:. .~.~...
._._e.._~:. ._.:_~:..._.
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.~ .~.~ ~.~ ,_ .._:~_
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MoMo ~:. .~.~....._
_._~.. ~q_~..q ..,..:.
. .~.~.~ ~.~ ,_ .._:~_
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~.:~~~_e..._.. ...:..q.e_e.
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.._.
Erwin Sikma, managing director Rocket Internet Myanmar CIassieds, speaks at a press brieng.
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March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
SOCIAL SCENES
30
Chana Poomee, Country Director of SCG in Myanmar, posing with SCG cement products featuring
new packaging during a press conference held as part of the SCG Build with Pride 2014 event. SCG
has moved from using the Elephant logo to clearly identifable SCG branding on the packaging
of its cement products. Zayar Phyo
(From L-R) U Maung Maung Tin, Managing Director, Farmer Pho Yarzar Co., Ltd, Mr Chana
Poomee, Country Director of SCG in Myanmar and U Tun Lwin, Managing Director, Shwe Me Co.,
Ltd. participate in a celebratory toast to SCGs 100th Anniversary at the SCGBuild with Pride 2014
event (12 March) held at Myanmar Convention Centre (MCC). Zayar Phyo
SCG staf welcoming guests to the SCG Build with Pride 2014 event (12 March) held at Myanmar
Convention Centre (MCC). Zayar Phyo
Chana Poomee, Country Director of SCG in Myanmar, speaks during a press conference held as
part of the SCG Build with Pride 2014 at Myanmar Convention Centre. Mr Poomee shared details
about SCGs newpackaging of its cement products, moving fromusing the Elephant logo to clearly
identifable SCG branding. Te new cement bag with SCG branding is aimed at strengthening
SCGs brand recognition amongst customers in Myanmar and across ASEAN. Zayar Phyo
SCG Build With Pride 2014 @ Myanmar Convention Center (MCC)
SCGhosted a party on the frst day of the SCGBuild with Pride 2014 event (12 March) at Myanmar
Convention Centre (MCC) which included dance performances. Te party was hosted by SCG to
thank its valued partners and customers in Myanmar as well as to celebrate SCGs 100th Anniver-
sary with them. Te second day of the event (13 March) will see product knowledge seminars hosted
for industry representatives, architects and developers. Zayar Phyo
Rocket Internets Press Briefng
on House.com.mm
Erwin Sikma, managing director Rocket Internet Myanmar Classifeds, speaks at the press
conference. Pann Nu
Michiel Bakker, country manager at House.com.mm, gives a presentation. Pann Nu
A house.com.mmrepresentative. Pann Nu
Te briefng. Pann Nu
Jaguar Land Rover Launching Ceremony
Speeches from Jaguar Land Rover delegates. Phyu Tit Lwin
Delegates at the press conference. Phyu Tit Lwin
Models with a Range Rover. Phyu Tit Lwin
A model with a Land Rover. Phyu Tit Lwin
A model with a Jaguar. Phyu Tit Lwin
Wine Tasting of Chateau de Clairefont
2007 and Chateau Prieure Lichine
A guest at the wine testing. Phyu Tit Lwin
James Ong, business director of PremiumY Co Ltd, at the event. Phyu Tit Lwin
Prasert Lekavanichkajorn (L), managing director of TPN Media (Myanmar), Lise Latrille
(M), sales and communication manager of Chateau Prieure Lichine, and James Ong, at the
wine tasting. Phyu Tit Lwin
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
CLASSIFIEDS
31
March 20-26, 2014
Myanmar Business Today
mmbiztoday.com
32
ENTERTAINMENT
Myanmar to be Awarded Worlds
Best Tourist Destination for 2014
M
yanmar will be pre-
sented the award of
World Best Tourist
Destination for 2014 by the Eu-
ropean Union Council on Tour-
ism and Trade (ECTT) soon,
state-run media reported.
The award is aimed at boost-
ing Myanmars tourism in-
dustry and promoting tourist
attractions in the country, ac-
cording to the report.
The award is presented based
on ethics for tourism industry,
safety of tourists and preserva-
tion of cultural heritages des-
ignated by the United Nations
Tourism Division, United Na-
LIons EducuLIonuI, ScIenLIhc
and Cultural Organization (UN-
ESCO) and European Union
Council on Tourism and Trade,
according to ECTT website.
The Worlds Best Tourist Des-
tination Award, introduced in
2007, is one of the highest ac-
Kyaw Min
colades in the travel and tour-
ism industry in the world, ECTT
claims.
In 2006 a collective of inter-
national specialists in tourism,
tourist education, tourism reg-
ulation experts and academics
from European Union member
countries decided introduce the
prIze Lo Inuence und supporL
development of tourism in non
European Union countries.
ECTT board states: This
uwurd musL be oered Lo LIe
countries that are embracing
tourism as a resource for cul-
tural and social development,
who respect ethics of human
relations and preserve cultural
and natural heritage and ...
must prove their commitment
towards sustainable develop-
ment, fair tourism and histori-
cal preservation.
The title should act as a
booster for tourism in that
place but in according with in-
ternational tourism accepted
laws and regulation as decided
by ECTT, the body said.
Previous winners included
Laos (2013), Trinidad and To-
bago (2012), UAE (2011) and
South Korea (2010).
In the wake of dramatic in-
crease in tourist arrivals, Myan-
mar has planned to introduce
travel insurance services. How-
ever, the number of applicants
is still low.
To enhance development of
its tourism industry, Myanmar
opened four entry and exit gates
on the Myanmar-Thai border in
August last year. Meanwhile,
visa-on-arrival for visitors from
48 countries and regions has
uIso been oered Lo IucIIILuLe
their travel to the country.
In 2013, Myanmar attracted
over 2 million tourists, of whom
1.14 million entered through bor-
der gates and 885,476 through
airports. Myanmar targets 3 mil-
lion tourist arrivals in 2014.
Bugun Lodge OHers "Iumily Iscupe
O
ne of Myanmars newest
boutique resort Bagan
odge Is pIvoLIng o ILs
proximity to one of the worlds
greuL IerILuge sILes by oerIng
a family package that trades on
a Burmese tradition: the use of
thanaka as a face paint.
The hour-long program is a
component of the new hotels
Family Escape deal, which
Pann Nu
Pandaw Starts Work On New Vessel
S
ingapore-based river cruise company Pandaw has started
building a new vessel, after the sinking of one of its other
boats late last year.
The Saigon Pandaw was being towed to Myanmar when it sank
In Ieuvy seus o LIe cousL oI MuIuysIu In December.
To make up for the lost capacity, Pandaw is now working on
a new boat that will be used to ply the waters of Myanmars
Chindwin River, the company said.
The Kha Byoo is described as a river recce vessel, as it sits
just 75cm in the water, allowing it to explore further upstream
than other boats.
It will join the Kalay Pandaw on the Chindwin River, sailing
seven-night itineraries between Monywa and Homalin. These
trips can also be booked back-to-back with the new Kindat Pan-
daws Mandalay-Bhamo routing on the Irrawaddy River.
Measuring 40-metres-long, Kha Byoo will feature an owners
state room on the upper deck plus nine other cabins with French
windows that open on to promenades on either side of the ship.
There is also an indoor bar-dining area and outdoor deck.
The new vessel is being designed as a replica of the Irrawaddy
Flotilla Company ship of the same name, which plied the Bur-
mese waterways 100 years ago. Pandaw will be hoping however,
that the new boat has a less dramatic existence than its name-
sake; the original Kha Byoo spent three days caught in a whirl-
pool in the Irrawaddy in 1899.
Kha Byoo will be Pandaws 13th vessel, and following the un-
fortunate events surrounding the Saigon Pandaw, the company
will be hoping for a bit more luck with its latest boat.
Zayar Phyo
also includes two nights for two
adults and two children under
12 in a 55-square-metre Deluxe
Room with 17-square-metre
private veranda, breakfast, air-
port transfers and a roll-away
bed.
Under the tutelage of Bagan
Lodges resident thanaka ex-
perts, guests will get the chance
to learn when the fragrant paste
wus hrsL empIoyed us u Iuce
paint, where it comes from,
wIuL ILs cosmeLIc benehLs ure
and how to authentically and
creatively apply it.
Its no secret that most kids
usually want nothing more than
to play in a pool all day long, es-
pecially when on vacation, said
Jon Bourbaud, Bagan Lodges
general manager.
Weve got a fantastic pool.
But weve also got the ability to
provide an experience that gets
under the surface of this won-
derful culture.
Family Escape is priced at
$300 including tax and service
charge and is valid for stays be-
tween March 15 and October 14
this year.
Opened in August last year,
Bagan Lodge features 85 rooms
conceptualised by noted French
designer Brigitte Dumont de
Chassart and sits on the edge
of an archaeological wonder-
land home to more than 3,000
ancient temples, pagodas and
stupas.
Tourist at a sunset viewing spot on Shwe San Daw Pagoda in Bagan, Myanmar.
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The swimming pool at Bagan Lodge.
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